SE Asia Stocks-Sluggish as investors continue to digest Fed comments

By Geo Tharappel

Aug 30 (Reuters) - Southeast Asian stock markets were flat

to lower in lacklustre trading on Tuesday, with the Philippines

leading the losses, as investors continued to digest U.S.

Federal Reserve officials' hawkish comments.

Investors are less sure when the U.S. policy might change

after Fed Chair Janet Yellen said on Friday the case for a rate

hike was strengthening, but provided little detail on when it

would next move.

While the initial market reaction was to push up the

probability of a September hike to 44 percent, investors quickly

had second thoughts and by Tuesday the implied chance was back

at 36 percent .

Traders also expect the August payrolls report due on Friday

to miss expectations, making it much harder for policymakers to

contemplate a September tightening.

Asian shares outside Japan gained 0.55

percent, recovering around half of Monday's loss.

Philippine shares fell as much as 1.6 percent in

their worst intraday performance since Aug. 3 and were headed

for their fifth session of losses.

With most of the catalysts like earnings and GDP numbers

already out and the absence of any market-stealing development,

stocks are in a correction phase, said Manny Cruz, an analyst

with Asiasec Equities Inc in Manila.

Consumer cyclicals were the biggest losers, with SM

Investments Corp shedding 2.54 percent.

Indonesian shares fell for a third straight session,

led by utilities including Perusahaan Gas Negara (Persero) Tbk

PT.

"Tracking the overnight US market strength, we expect JCI to

demonstrate a modest rebound," said Taye Shim, an analyst with

Daewoo Securities Indonesia.

Annual inflation rate in August likely dropped to its lowest

level since December 2009, a Reuters poll showed.

Thai shares eked out marginal gains, shrugging off

disappointing July manufacturing output data.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS

Change at 0443 GMT

Market Current Previous close Pct Move

Singapore 2830.34 2829.43 0.03

Bangkok 1548.72 1544.15 0.30

Manila 7725 7845.49 -1.54

Jakarta 5346.69 5370.764 -0.45

Kuala Lumpur 1683.03 1681.6 0.09

Ho Chi Minh 670.12 669.44 0.10

Change on year

Market Current End 2015 Pct Move

Singapore 2830.34 2882.73 -1.82

Bangkok 1548.72 1288.02 20.24

Manila 7725 6952.08 11.12

Jakarta 5346.69 4593.008 16.41

Kuala Lumpur 1683.03 1692.51 -0.56

Ho Chi Minh 670.12 579.03 15.73

(Reporting by Geo Tharappel; Editing by Subhranshu Sahu)