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SE Asia Stocks-Sell-off continues; Manila fares worst on week

By Viparat Jantraprap BANGKOK, Nov 12 (Reuters) - Southeast Asian stock markets fell on Friday, led by commodities and banking shares, as investors took profits amid a broad retreat from risky assets. In addition to increased risk-aversion, a rebound in the U.S. dollar and worries over capital controls dragged on regional indexes. The Philippine index fell for a sixth session after hitting a record intraday high last week. The Philippine market suffered a 6.3 percent loss on the week and was Southeast Asia's worst performer, ahead of a 3.4 percent fall in Vietnam's main index and a 2.1 percent drop in Thailand. The Manila drop has shadowed a fall in the Philippine peso , with some traders believing the central bank is trying to squeeze the currency lower to deter inflows after news of the Federal Reserve's latest round of quantitative easing. However, the peso rebounded on Friday on news S&P had upgraded its foreign currency rating, affirming a stable outlook. Asian stocks were broadly lower on Friday, with the MSCI index of Asia-Pacific stocks outside Japan down 1.8 percent because of renewed sovereign debt worries in Europe, plus fears of both a slowdown and overheating in China and of a double-dip recession in the United States. The Thai SET index fell 1.1 percent to its lowest in almost two weeks and Singapore dropped 1.3 percent to the lowest in almost a week Malaysia and Indonesia both set record highs early this week but lost 0.9 percent and 2.1 percent respectively on Friday. In Bangkok, the sell-off was also triggered by the Bank of Thailand's imposition of limits on bank lending for residential property to prevent a bubble emerging in the sector, which sent property shares lower. "Momentum is building for a serious correction in equity markets, particularly in Asia where they have outperformed their Western relatives," Kim Eng Securities said in a research note. Thai energy firm PTT fell 1.2 percent to a one-week low ahead of results, which were in line with forecasts, while Singapore lender Oversea-Chinese Banking Corp slid 2.5 percent and Malaysian power producer Tenaga Nasional fell more than 1 percent to a four-month low. (Editing by Alan Raybould) ((viparat.jantraprapaweth@thomsonreuters.com; +66 2 648 9733; Reuters Messaging: viparat.jantraprapaweth.thomsonreuters.com@reuters.net)) FACTORS TO WATCH: Malaysia's Maybank posts 16 pct rise in Q1 profit Thai c.bank says studying tax on fund inflows Thai c.bank sets limits on home loans S&P upgrades Philippines, peso firms up OPEC ups output by reducing output compliance-IEA SOUTHEAST ASIAN STOCK MARKETS Change on the day Market Current Prev Close Pct Move Singapore 3252.00 3293.39 -1.26 Kuala Lumpur 1499.81 1513.70 -0.92 Bangkok 1018.86 1029.86 -1.07 Jakarta 3665.85 3744.62 -2.10 Manila 4076.68 4144.41 -1.63 Hanoi 441.60 446.69 -1.14 Change on year Market Current End prev yr Pct Move Singapore 3252.00 2897.62 +12.23 Kuala Lumpur 1499.81 1272.78 +17.84 Bangkok 1018.86 734.54 +38.71 Jakarta 3665.85 2534.36 +44.65 Manila 4076.68 3052.68 +33.54 Hanoi 441.60 494.77 -10.75 ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E.

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