* Malaysia May trade data due at 0400 GMT
* Singapore recovers after two lacklustre sessions
By Rashmi Ashok
July 4 (Reuters) - Southeast Asian stock markets inched
higher on Thursday in thin trade, as weak economic data in the
United States fuelled hopes of a U.S. Federal Reserve rate cut
as early as July, which boosted risk appetite.
"Risk-on sentiment returns with sputtering U.S. economic
data putting the Fed policy easing back in focus," ING said in a
note.
"Disappointing services data and still widening trade
deficit in the United States has stoked expectations that the
Fed is on track to cut policy rates as early as July," it added.
Data showed the U.S. trade deficit jumped in May and
Sino-U.S. trade tensions helped drive activity in the services
sector to a two-year low in June, while private employers added
far fewer-than-expected jobs to their payrolls. Singapore's index .STI advanced, after two tepid sessions
where the index closed flat. Lender Oversea-Chinese Banking
Corporation Ltd OCBC.SI gained 0.4% while conglomerate Jardine
Matheson Holdings JARD.SI added 0.7%.
Malaysia's benchmark .KLSE traded sideways as winds of
caution rose ahead of the release of its May trade data, which
is due at 0400 GMT.
A Reuters poll showed that its exports likely increased 3.6%
in May from a year earlier, faster than the previous
month. "Electronics exports are holding up relatively well in face
of large declines elsewhere. A stark contrast with Singapore...
probably reflects supply chain relocation from Singapore to
Malaysia," ING noted.
"Even so, it's hard to see Malaysia's electronics exports
continuing to defy the global downturn."
Vietnam's index .VNI was the top gainer in the region, up
0.6%. Joint Stock Commercial Bank for Foreign Trade of Vietnam
VCB.HM and Vingroup JSC VIC.HM were among top boosts to the
index, rising 2.2% and 0.4% respectively.
Thai stocks .SETI , the region's sole gainer in the
previous session, rose 0.3%. Recent strength in the Thai baht
has driven a surge in foreign fund inflows since June.
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SOUTHEAST ASIAN STOCK MARKETS at 0303 GMT
Change on the day
Market Current Previous close Pct Move
Singapore 3375.6 3367.8 0.23
Bangkok 1743.44 1738.51 0.28
Manila 8101.58 8092.68 0.11
Jakarta 6375.533 6362.622 0.20
Kuala Lumpur 1690.34 1690.05 0.02
Ho Chi Minh 966.02 960.39 0.59
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3375.6 3068.76 10.00
Bangkok 1743.44 1563.88 11.48
Manila 8101.58 7,466.02 8.51
Jakarta 6375.533 6,194.50 2.92
Kuala Lumpur 1690.34 1690.58 -0.01
Ho Chi Minh 966.02 892.54 8.23