SE Asia Stocks-Subdued; Philippines marks 2-month closing low

* Financials drag Malaysian index lower

* Indonesia falls for second straight session

* Thailand posts near 4-month closing high

By Sumeet Gaikwad

Sept 18 (Reuters) - Southeast Asian stock markets were

largely subdued on Tuesday with investors staying cautious amid

a new round of U.S. tariffs on Chinese goods, while the

Philippines slumped to a two-month closing low.

U.S. President Donald Trump stepped-up his trade war with

China on Monday after imposing 10 percent tariffs on $200

billion worth of Chinese imports, but warned that retaliatory

action by China would lead to further tariffs.

"There could be a diversion of investment from China to

other ASEAN countries, as manufacturers seek to shield

production from U.S. tariffs," Mizuho Bank said in a note.

Philippine shares marked their lowest close in two

months as financial and industrial stocks faltered with

blue-chip SM Investments Corp down 3.4 percent, while

Bank of the Philippine Islands plunged over 4 percent.

Southeast Asian shares opened lower, but no sharp falls were

seen as the new tariffs were well within expectations, and

investors had taken positions accordingly.

Singapore stocks ended slightly lower, weighed down

by financials and consumer stocks, with lender United Overseas

Bank and Wilmar International Ltd declining

0.2 percent and 1.3 percent, respectively.

Financials also told on the Malaysian index which

lost over half a percent. Malayan Banking Bhd fell 1.6

percent, while CIMB Group Holdings was down over 3

percent.

Malaysian inflation data is due on Wednesday, with the

consumer price index seen rising 0.4 percent in August from a

year earlier, its slowest pace in more than three years, a

Reuters poll showed.

The Jakarta index held steady amid headwinds from

the U.S.-China trade war but was marginally down due to losses

in consumer staples.

Consumer products maker Unilever Indonesia slipped

over 1 percent while Indofood Sukses Makmur fell

nearly 3 percent.

The index of the country's 45 most liquid stocks

was down 0.2 percent.

Meanwhile, Thai shares notched a near four-month

closing high with broadbased gains.

Index heavyweights PTT Pcl and Airports of Thailand

rose 2 percent and 2.3 percent, respectively.

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SOUTHEAST ASIAN STOCK MARKETS

Market Current Previous Close Pct Move

Singapore 3139.34 3141.4 -0.07

Bangkok 1744.42 1718.39 1.51

Manila 7286.34 7413.56 -1.72

Jakarta 5811.79 5824.257 -0.21

Kuala Lumpur 1792.94 1803.76 -0.60

Ho Chi Minh 993.49 987.61 0.60

Change on year

Market Current End 2017 Pct Move

Singapore 3139.34 3402.92 -7.75

Bangkok 1744.42 1753.71 -0.53

Manila 7286.34 8558.42 -14.86

Jakarta 5811.79 6355.654 -8.56

Kuala Lumpur 1792.94 1796.81 -0.22

Ho Chi Minh 993.49 984.24 0.94

(Reporting by Sumeet Gaikwad in Bengaluru; Editing by Sunil

Nair)