Southeast Asia stocks: Most edge up; Philippines climbs to near two-month high

(Reuters) - Most Southeast Asia shares edged higher on Monday with a resolution to the Sino-U.S. trade dispute still in doubt, while Philippine shares extended their rally on the back of last week's interest rate hike.

Philippine shares <.PSI> rose for a fourth consecutive session, surging 2.6 percent to a near-two-month closing high.

The Philippine central bank on Thursday raised its benchmark interest rate for the fifth straight time in a bid to tackle elevated inflation and bring it back to within its target range next year.

"Last week central bank hiking rates contributes to the magnitude of the rally today," said Charles William Ang, an associate analyst with COL Financial Group, Inc.

The central bank also forecast inflation would return to its 2-4 percent target range next year, suggesting its current tightening cycle may be at an end.

Index heavyweight SM Investments Corp climbed 4.3 percent, while the country's oldest conglomerate, Ayala Corp, soared as much as 4.5 percent to hit a near-two-month closing high.

However, most other regional markets were hurt by Sino-U.S. tensions which were clearly on display at an APEC meeting in Papua New Guinea over the weekend, where leaders failed to agree on a communique for the first time ever.

Malaysian stocks <.KLSE> edged up 0.3 percent, with IHH Healthcare Bhd climbing 1.5 percent and CIMB Group Holdings Bhd rising 1.4 percent.

Vietnam stocks <.VNI> hit a one-week closing high, adding 2 percent, boosted by real estate and financial stocks.

Singapore shares <.STI> fell 0.6 percent, with conglomerate Jardine Matheson Holdings Ltd plunging as much as 2.9 percent, while Oversea-Chinese Banking Corporation Ltd slipped 0.6 percent.

Indonesia's benchmark index <.JKSE> edged 0.1 percent lower, after four straight sessions of gains, dragged down by losses in telecommunication and energy sectors.

Telekomunikasi Indonesia (Persero) Tbk slipped as much as 2.5 percent, while conglomerate Astra International Tbk PT shed 0.6 percent.

Thai shares <.SETI> were flat after the country's economy unexpectedly stalled in the third quarter, spurring questions about whether weakness in key growth drivers - exports and tourism - will make authorities delay hiking interest rates for the first time since 2011.

(Reporting by Aman Swami; Editing by Sunil Nair)

By Aman Swami