Meanwhile, other markets traded in tight range ahead of the U.S. non-farm payrolls data, due later in the day, which will help make or break the case for a rate cut by the Federal Reserve.

Malaysia's index <.KLSE> extended losses to a third session after its third-largest stock - electricity supplier Tenaga Nasional Berhad (TNB) - marked its lowest close in two weeks. Tenaga largely enjoys a monopoly over the country's electric utility services sector.

News portal Malaysiakini reported https://www.malaysiakini.com/news/482501 that the Ministry of Energy, Science, Technology, Environment and Climate Change was studying a proposal to liberalise the electricity retail sector and allow users to choose suppliers other than TNB.

"Overall, we believe that the liberalisation of the retail segment would be negative for Tenaga as operating profit margins may be affected," AmInvestment Bank said in a note.

Philippine stocks <.PSI> rallied on hopes of a rate cut as early as August after data showed the country's annual inflation easing to a near two-year low in June, as food and fuel costs increased at a slower pace.

It was also the first time since December 2017 that inflation eased below the midpoint of the central bank's 2%-4% target this year.

"The Bangko Sentral ng Pilipinas (BSP) Governor Diokono has hinted at further rate cuts on the back of falling inflation. Persistent downside growth risks and falling inflation should move the BSP for another 25bp rate cut as early as August," ING note said.

Singapore stocks <.STI> ended lower on the back of financials, but notched their fifth straight weekly gain.

Vietnamese <.VNI> stocks rose marginally and were the top gainers in the region across the week, rising 2.7%.

Indonesian stocks <.JKSE> closed flat, but climbed 0.2% for the week in their sixth weekly gain.

Thai stocks rose marginally across the week to post their seventh straight weekly gain.


For a graphic on SEA Stocks pct gain for week of July 1-5, see -https://tmsnrt.rs/2FUk2I3

(Reporting by Rashmi Ashok in Bengaluru, Editing by Sherry Jacob-Phillips)

By Rashmi Ashok