SE Asia Stocks-rebound; Singapore Air, banks lead way

* S'pore comes off 1-week low

* Banks outperform in Indonesia, Thailand

* Vietnam near 9-month high, Malaysia, Philippines down

By Viparat Jantraprap

BANGKOK, June 9 (Reuters) - Most Southeast Asian stocks
ended higher on Tuesday, with Singapore coming off a 1-week low
and Indonesia rising almost 2 percent as heavyweight shares
like Singapore Air and Bank Mandiri led the way.

Equities in the region fell earlier in the day as investors
cashed in on recent rallies. Analysts said a weak U.S. dollar
boded well for stocks and commodity prices.

Singapore's index .FTSTI closed up 0.7 percent, after
sliding to a 1-week low in early trade. Indonesia's index
.JKSE climbed 1.8 percent after a 1.1 percent fall on Monday,
and Thailand's index .SETI rose 1.3 percent after opening
lower.

Vietnam .VNI extended its gains for a seventh day, adding
2.2 percent to reach its highest level since September 10.

In Bangkok, broker Kim Eng Securities advised investors to
buy shares in sectors seen less affected by market volatility
such as telecoms, utilities and retail.

"U.S. dollar movement against major currencies is pivotal
to equity markets. Our strategy of "stay invested" in equities
is based on continued dollar weakness, which brings about a
reciprocal rise in commodity prices," it said.

The dollar slipped on Tuesday, pausing from gains versus
the euro as investors reassessed whether speculation of a
possible rise in U.S. interest rates later this year may push
the currency higher. [USD/]

In Thailand, Bangkok Bank BBL.BK jumped 4.5 percent,
mobile phone firm DTAC DTAC.BK gained 2.5 percent, and
utility firm Glow Energy GLOW.BK rose 4.5 percent.

In Singapore, Singapore Airlines (SIAL.SI) gained 4.4
percent after the carrier said it was still keen on
acquisitions in China and India.

Singapore Exchange (SGXL.SI) rose 0.9 percent to S$7.60
after broker DBS Vickers raised the price target of the stock
to S$9.10 from S$7.80, citing the bullish market sentiment and
its view that SGX is still the cheapest stock exchange in the
region.

Advancers in Jakarta included PT Bank Mandiri Tbk
(BMRI.JK), which jumped 5.1 percent, and PT Bank Central Asia
Tbk (BBCA.JK), up 3.9 percent.

In Hanoi, Petrovietnam Finance Joint Stock Corporation
PVF.HM and Vinamilk VNM.HM each gained nearly 5 percent.

Bucking the trend, Malaysia index .KLSE fell for a second
day, down 0.1 percent after Malaysia's long-term local currency
rating was cut to A from A-plus by Fitch Ratings.

Malayan Banking (MBBM.KL) slid 2.7 percent and
Bumiputra-Commerce BUCM.KL eased 1.1 percent.

The Philippine index .PSI fell for a second day to its
lowest level since June 4. Metropolitan Bank & Trust (MBT.PS)
and Banco de Oro Unibank (BDO.PS) each dropped more than 4
percent.
($1=34.24 Baht)
(Editing by Darren Schuettler)