SE Asia Stocks-Financials push most markets higher

* Banking shares lead most SE stock markets higher

* Hopes for liquidity-driven rally after Fed comments

By Viparat Jantraprap

BANGKOK, June 25 (Reuters) - Most Southeast Asian stock
markets rose for a second day on Thursday as gains in
financials such as DBS Group, Maybank and Bank Rakyat helped
push Singapore, Malaysia and Indonesia to their highest in more
than a week.

A statement by the U.S. Federal Reserve after a policy
meeting reinforced the view that U.S. rates would be kept at a
record low for some time, boosting optimism in stocks.

"The Fed's decision to leave rates unchanged was
unsurprising. More importantly, the commentary in the FOMC
statement suggests tightening measures are not on the horizon,"
Macquarie Research Equities said in a note.

"This is relatively good news for Asia as it means the
liquidity-driven rally that we have seen thus far is set to
continue," it said.

Asian stocks elsewhere also rallied for a second day on
Thursday and the MSCI index of Asia-Pacific stocks outside
Japan .MIAPJ0000PUS was up 1.2 percent by 0956 GMT.

Singapore's index .FTSTI closed up 1.03 percent, slightly
below its early rise to the highest level since June 15, with
DBS Group Holdings (DBSM.SI), Southeast Asia's biggest bank, up
1.8 percent.

Other market advancers included CapitaLand (CATL.SI), which
jumped 3.3 percent, and Singapore Telecommunications (STEL.SI),
which rose 1 percent after BNP Paribas raised its target price
following an upgrade in its Indian unit, Bharti Airtel
(BRTI.BO).

Malaysia's index .KLSE rose 1.5 percent to its highest
since June 17, with Malayan Banking (MBBM.KL) up 2.6 percent
and Bumiputra Commerce BUCM.KL 1.7 percent higher.

The Jakarta index .JKSE climbed 2.4 percent to its
highest level since June 16, with Bank Rakyat (BBRI.JK) adding
5.7 percent and Bank Central Asia (BBCA.JK) rising 4.8 percent.

Manila .PSI rose 2.1 percent to its highest level since
June 17, with Bank of Philippine Islands (BPI.PS) up 3.6
percent and Metropolian Bank & Trust (MBT.PS) up 3.1 percent.

The Thai index .SETI gained 1.6 percent, led by a 5.9
percent rise in fifth-ranked Bank of Ayudhya BAY.BK, while
top lender Bangkok Bank BBL.BK was up 0.5 percent.

The SET index earlier rose as much as 2.4 percent to its
highest since June 17. Broker Macquarie said it had raised its
rating on Thailand to neutral from a marginal underweight and
raised its 2009 SET index target to 650 from 520.

"We believe the Thai economy already bottomed in the first
quarter and will show incremental improvement from the second
quarter onwards. We also believe that the worst in terms of
perceived political instability is past," it said.

Bucking the trend, the Vietnam index .VNI lost 0.5
percent, reversing from a 4 percent gain on Wednesday, with
PVFC PVF.HM, the financial arm of state oil group
Petrovietnam, down 3.8 percent and Vinpearl Tourism and Trading
VPL.HM down 3.5 percent.
($1 = 34.08 Baht)
(Editing by Alan Raybould)