U.S. Markets closed

SE Asia Stocks-Fall on flattening US yield curve, trade worries

* Philippines, Singapore top losers

* Thailand closed for holiday

By Shreya Mariam Job

Dec 5 (Reuters) - Southeast Asian stocks fell on Wednesday,

in line with global markets, as a flattening U.S. treasury yield

curve stoked recession fears and rising uncertainty around the

U.S.-China trade talks brought global slowdown concerns to the

fore.

Benchmark 10-year U.S. Treasury yield fell to its lowest

point since mid-September. The spread between the 10-year yield

over its two-year counterpart also shrank to the smallest since

the start of the financial crisis in January 2008, signalling to

some investors an approaching U.S. economic slowdown.

Investors were also worried a trade deal between the world's

two biggest economies was far from a sure bet after Washington

and Beijing agreed to temporarily end their trade war during

talks at the G20 summit in Argentina.

MSCI's broadest index of Asia-Pacific shares outside Japan

fell 1.35 percent.

"Questions on trade, worries about U.S. growth and perceived

dovishness on the Fed all play a part in explaining these market

moves. Concerns were also compounded by increasing news

narrative on inverted curves and risks of a recession," DBS Bank

Ltd's rates strategist Eugene Leow and economist Radhika Rao

said in a note.

Philippine stocks fell 2 percent before cutting some

of the losses on data showing inflation eased in November.

"In terms of inflation, we saw it on a positive note. We're

expecting somewhat for the index to at least recover," said

Rachelle Cruz, a research analyst with Manila-based AP

Securities.

Annual inflation slowed to a four-month low in November,

easing pressure on the central bank to raise interest rates

further with some analysts predicting a rate cut as early as

next year if the inflationary pressures continue to ease.

Persistent price pressures have curbed demand and had

prompted the government to cut its economic growth target for

this year in October.

Industrials and financials were the top losers, with SM

Investments Corp dipping 2.3 percent and SM Prime

Holdings Inc weakening 1.9 percent.

Singapore stocks extended losses into a second

session, shedding as much as 1.3 percent.

Technology and utility stocks were the biggest losers with

Jardine Strategic Holdings Ltd dropping 1.8 percent and

DBS Group Holdings Ltd declining 1.7 percent.

Malaysian stocks fell 0.6 percent, dragged by

telecommunication services and utility stocks, while Indonesian

shares declined on financials and consumer

discretionaries.


Malaysia posted its largest trade surplus in October, with

total exports surging 17.7 percent from a year earlier, beating

estimates of a 6.2 percent rise.

Financial and consumer staples stocks pulled down Vietnam

shares, with Masan Group Corp and Vietnam Dairy

Products JSC dropping 0.7 percent and 1.2 percent,

respectively.

The Thai stock market was closed for a holiday.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS: As at 4:04 GMT

Market Current Previous close Pct Move

Singapore 3133.88 3167.79 -1.07

Manila 7598.08 7703.92 -1.37

Jakarta 6118.979 6152.86 -0.55

Kuala Lumpur 1685.05 1694.99 -0.59

Ho Chi Minh 955.24 958.84 -0.38

Change on year

Market Current End prev yr Pct Move

Singapore 3133.88 3402.92 -7.91

Manila 7598.08 8,558.42 -11.22

Jakarta 6118.979 6,355.65 -3.72

Kuala Lumpur 1685.05 1796.81 -6.22

Ho Chi Minh 955.24 984.24 -2.95

(Reporting by Shreya Mariam Job in Bengaluru; Editing by

Subhranshu Sahu)