SE Asia Stocks - Thai stocks lead regional falls for 2nd day

* Markets suffer late selling; touched 2-mth highs earlier

* Thai stocks fall 2.2 pct; no surprise on stimulus package

* Indonesia briefly cheered by rate cut

By Viparat Jantraprap

BANGKOK, Jan 7 (Reuters) - Thai stocks fell more than 2
percent on Wednesday, leading falls in the region for a second
day as renewed concern over the dismal economic outlook
prompted investors to quickly lock in gains from a rally in big
caps.

A stimulus package announced by the Thai cabinet was short
on detail and failed to lift market sentiment, while a dip in
oil prices helped to pull heavyweight energy shares lower,
analysts said.

"The stimulus package gave no positive surprises and led
market punters to sell on the fact," said Kosin Sripaiboon,
head of research at UOB Kayhian Securities.

"Late foreign selling hit stock markets across the region,
which partly reflected weakness in Dow Jones futures," he
added.

The benchmark Thai SET index .SETI fell 2.2 percent,
erasing an earlier rise of 1.3 percent to a two-month high,
with top coal miner Banpu BANP.BK sliding 3.1 percent and
energy firm PTT Exploration PTTE.BK 3.3 percent lower.

Bank shares also underperformed the broader market with
Siam City Bank SCIB.BK falling 3.3 percent after the number
seven bank said it expected weaker loan growth this year amid a
slowdown in the economy.

Most major Southeast Asian marekts gave up early gains,
with Singapore's index .FTSTI down 1.7 percent at the close
and Indonesia's .JKSE ending 0.98 percent lower.

In Singapore, banks and property were among decliners, with
top bank DBS Group (DBSM.SI) easing 1.1 percent, United
Overseas Bank (UOBH.SI) losing 1.8 percent and CapitaLand
(CATL.SI), Southeast Asia's largest property developer, sliding
8.2 percent.

In Jakarta, a larger-than-expected cut in interest rates by
the central bank spurred hopes for economic growth and briefly
boosted buying in bank shares, before profit-taking set in.
[ID:nJAK187876]

Bank Mandiri (BMRI.JK) dropped 3.45 percent, giving up a
3.5 percent gain earlier, Bank Rakyat (BBRI.JK) lost 1.6
percent and Bank BNI (BBNI.JK) ended up 1.4 percent after
soaring nearly 10 percent in early trade.

Malaysia's stock index erased most of its 1.6 percent gain
to close up just 0.58 percent after weak export data, despite
expectations that the central bank would cut interest rates.
[ID:nKLR402563]

Palm oil producer IOI Corp (IOIB.KL) dipped 1.8 percent and
builder WCT (WCTE.KL) dropped 11.6 percent when the stock
resumed trading after the company said a joint venture had lost
a $1.3 billion contract to build a racecourse in Dubai.

Philippine shares .PSI rose 1.74 percent to their highest
since Nov. 5, top developer Ayala Land (ALI.PS) leading with a
2.9 percent rise, while Vietnam's index .VNI climbed 1.76
percent to its highest since Nov. 25. [ID:nHAN127545]
($1=34.95 Baht)
(Editing by Alan Raybould)