SE Asia Stocks-Malaysia gains to near 3-wk high; others mixed

Nov 25 (Reuters) - Malaysian stocks rose for a second

straight session on Tuesday to their highest in nearly three

weeks on the government's decision to abolish fuel subsidies

from Dec. 1, while other Southeast Asian stock markets traded

mixed amid waning optimism over China's rate cut.

The FTSE Bursa Malaysia KLCI Index was up 0.3

percent at 0736 GMT, led by a 2.9 percent gain in Petronas Gas

.

Malaysia will scrap subsidies for petrol and diesel, the

government said on Friday, a move that could potentially result

in some 20 billion ringgit ($5.97 billion) savings annually.

Sentiment was also boosted after the IMF said Malaysia was

on track to achieve the 2014 federal budget deficit target of

3.5 percent, down from 3.9 percent in 2013 and that it also

projected deficit could decline below 3 percent of GDP in 2015

with fuel subsidy removal.

Stock markets in south-east Asia were buoyed in the previous

session after the People's Bank of China cut its benchmark

interest rates for the first time in more than two years on

Friday to lower borrowing costs and lift a cooling economy that

is on track for its slackest annual growth in 24 years.

"Rate cut of China was little bit optimistic, but it has now

been factored in," said Song Seng Wun, an economist with

Singapore-based CIMB. "But the focus is on whether there will be

a rebound in the oil prices."

Oil prices lost more ground on Tuesday ahead of a

much-anticipated meeting of the Organization of the Petroleum

Exporting Countries (OPEC) later this week.

Singapore's Straits Times Index was steady, while

the Thai SET index and the Indonesian index were

down 0.1 percent each after hitting their near two-month closing

highs in the previous session.

The Philippine index was 0.5 percent weaker after

hitting a two-month closing high in the previous day. Vietnam's

benchmark VN Index rebounded 0.9 percent as investors

picked up beaten-down stocks after the index hit a near

one-month closing low in the previous session.

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SOUTHEAST ASIAN STOCK MARKETS

Change at 0734 GMT

Market Current Prev Close Pct Move

Singapore 3341.00 3340.53 +0.01

Kuala Lumpur 1838.98 1833.77 +0.28

Bangkok 1588.20 1590.14 -0.12

Jakarta 5136.36 5141.76 -0.11

Manila 7286.85 7325.13 -0.52

Ho Chi Minh 587.75 582.53 +0.90

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)