SE Asia Stocks -Rise along with Asia; Indonesia leads

BANGKOK, Oct 20 (Reuters) - Southeast Asian stocks rose on

Monday, with Indonesian shares hitting their highest in more

than two weeks amid expectations of a cut in fuel subsidy and

easing political tensions.

Gains in the region were also supported by brighter

sentiment regarding global risk assets.

Japanese stocks led a rally in Asia on Monday, after solid

U.S. data and earnings calmed tumult in global financial markets

and reassured investors worried about the health of the world

economy.

Brokers in the region cited expectations about the U.S.

interest rates.

"Expectations grew for the U.S. Fed to maintain interest

rate at a low level until the second half of 2015 and while the

ECB pledged to begin its asset purchase soon, which could lead

to a relief rise after a week of sharp correction,"

Bangkok-based broker KGI Securities said.

Among the outperformers, Indonesia's key index was

up 1.02 percent at 5,080.42 after hitting 5,101.21, the highest

since Oct. 2. Inflows lifted large caps with Bank Mandiri

and Telkom Indonesia among the top actively

traded stocks.

Former Jakarta Governor Joko Widodo was sworn in as

Indonesia's seventh president at a ceremony in parliament on

Monday. One of his first jobs will be cutting back generous fuel

subsidies to avoid breaching a legal limit on the budget

deficit.

The Thai SET index traded up 0.64 percent at

1,538.56. Shares of Kasikornbank jumped more than 3

percent and Bangkok Bank rose about 1 percent after

both of them reported better-than-expected July-September

earnings.

Stocks in Singapore and Malaysia extended

their gains for a second consecutive session, further recovering

from recent weakness due to concerns about the health of the

global economy.

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SOUTHEAST ASIAN STOCK MARKETS

Change at 0420 GMT

Market Current Prev Close Pct Move

Singapore 3185.11 3167.73 +0.55

Kuala Lumpur 1802.63 1788.31 +0.80

Bangkok 1538.56 1528.71 +0.64

Jakarta 5080.42 5028.95 +1.02

Manila 7057.22 7003.22 +0.77

Ho Chi Minh 589.94 585.28 +0.80

(1 US dollar = 12,005.0000 rupiah)

(Reporting by Viparat Jantraprap; Editing by Subhranshu Sahu)