SE Asia Stocks-Rebound as Mideast tensions wane; Malaysia leads gains

* Global markets take breather amid no fresh U.S.-Iran threats * Philippine Dec CPI above forecast * Thai stocks rebound from worst fall in over 2 months By Sameer Manekar Jan 7 (Reuters) - Most Southeast Asian stock markets on Tuesday recovered from previous session's losses, as investors tempered expectations for a widespread geopolitical conflict with no exchange of fresh threats between the United States and Iran. Regional stock markets fell between 0.5% and 1.7% on Monday after the United States warned of major retaliation if Iran strikes back for the killing of its military commander and threatened to impose sanctions on Iraq for the expulsion of U.S. troops from Baghdad. U.S. Defense Secretary Mark Esper on Monday said that the United States has no plans to pull its troops out of Iraq. "There is a likelihood of heightened geopolitical risks in the Middle East, as well as globally, so markets are likely to be volatile over the week," Linus Loo, head of research at Lim & Tan Securities said, adding that optimism surrounding the U.S.-China Phase 1 trade deal may return to the markets. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.6%, recouping almost all of Monday's losses. Leading the gains in the region, Malaysian stocks rebounded from a nearly 1% drop in the previous session. Financials and consumer sectors boosted the benchmark, with Malayan Banking and Sime Darby Plantation advancing 0.4% and 1.3%, respectively. Singapore's benchmark index rose on the back of gains in blue-chip stocks, with Southeast Asia's largest lender DBS Group Holdings and Oversea-Chinese Banking Corp adding nearly 1% each. Thai stocks clawed back from their worst drop in over two months in the previous session, lifted by petrochemicals producer PTT Global Chemical and telecom firm Advanced Info Service. The Philippine index gained 0.3% after data on Tuesday showed the country's annual inflation picked up more than expected in December, but remained well within the central bank's target. The benchmark was boosted by SM Investments Corp and Ayala Corp, which jumped 2% and 0.6%, respectively. "The surprise inflation print in December should keep Bangko Sentral ng Pilipinas (BSP) on alert as they gauge price developments going into 2020," ING said in a note, adding that there is scope for the central bank to ease monetary policy further in 2020. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0346 GMT Change on the day Market Current Previous close Pct Move Singapore 3242.99 3218.86 0.75 Bangkok 1578.38 1568.5 0.63 Manila 7818.21 7797.87 0.26 Jakarta 6265.661 6257.403 0.13 Kuala Lumpur 1610.52 1597.76 0.80 Ho Chi Minh 955.25 955.79 -0.06 Change so far in 2020 Market Current End 2019 Pct Move Singapore 3242.99 3222.83 0.63 Bangkok 1578.38 1579.84 -0.09 Manila 7818.21 7,815.26 0.04 Jakarta 6265.661 6,299.54 -0.54 Kuala Lumpur 1610.52 1588.76 1.37 Ho Chi Minh 955.25 960.99 -0.60 (Reporting by Sameer Manekar in Bengaluru, Editing by Sherry Jacob-Phillips)