SE Asia Stocks-Singapore jumps most in over 3-1/2 months on financials

* Philippines declines 1.2 pct on inflation data

* Malaysia rises to near 2-1/2-month closing high

By Karthika Suresh Namboothiri

Aug 7 (Reuters) - Singapore shares jumped the most in more

than three-and-a-half months on Tuesday with financials leading

the charge, while Philippine stocks fell as data showing

mounting inflation strengthened expectations for further policy

tightening this week.

Singapore's FTSE Straits Times Index rose 1.7 percent

to its highest close in nearly eight weeks. Oversea-Chinese

Banking Corp climbed 4.1 percent higher, while United

Overseas Bank Ltd rose 3.3 percent.

In the Philippines, the main stock index extended

declines into a second session and closed 1.2 percent lower.

"Markets are reacting to the inflation figure that came at a

new height, which basically disappointed investors and raised

concerns about an overheating economy," said Lexter Azurin, a

senior analyst at AB Capital Securities.

Inflation quickened to 5.7 percent in July, the fastest rise

in more than five years, due to higher food and transport costs.

It was higher than the 5.5 percent median forecast in a Reuters

poll, and near the top end of the central bank's 5.1-5.8 percent

estimate for the month.

The central bank, which is meeting on Aug. 9, looks certain

to raise interest rates for the third time this year, after data

showed annual inflation moved further above its 2-4 percent 2018

target range.

SM Investments Corp dropped 2.1 percent, while BDO

Unibank closed more than 4 percent lower.

Elsewhere in Southeast Asia, Indonesian shares edged

lower with consumer and telecom stocks leading the fall.

Unilever Indonesia was the biggest drag with a decline

of 2.6 percent.

Malaysian shares erased early falls to rise 0.6

percent to their highest close since May 25.

Digi.Com Bhd climbed 4.2 percent, while aluminium

producer Press Metal Bhd was up 4.3 percent.

Energy stocks helped Thai shares close 0.7 percent

higher. PTT Public Co and PTT Exploration and

Production rose 1.5 percent and 2.2 percent

respectively, as oil prices gained.

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SOUTHEAST ASIAN STOCK MARKETS

Change on the day

Market Current Previous close Pct Move

Singapore 3340 3285.34 1.66

Bangkok 1707.26 1696.24 0.65

Manila 7725.85 7817.31 -1.17

Jakarta 6091.25 6101.131 -0.16

Kuala Lumpur 1791.09 1779.75 0.64

Ho Chi Minh 956.79 960.23 -0.36

Change on year

Market Current End 2017 Pct Move

Singapore 3340 3402.92 -1.85

Bangkok 1707.26 1753.71 -2.65

Manila 7725.85 8558.42 -9.73

Jakarta 6091.25 6355.654 -4.16

Kuala Lumpur 1791.09 1796.81 -0.32

Ho Chi Minh 956.79 984.24 -2.79

(Reporting by Karthika Suresh Namboothiri; Editing by

Subhranshu Sahu)