SE Asia stocks end lower ahead of ECB meeting

Most Southeast Asian stock markets ended lower on Thursday as an upcoming meeting by the European Central Bank kept investors skittish and looking for cues on a much anticipated unwinding of unconventional policy that has kept borrowing costs at rock bottom.

The ECB meeting later in the global day is expected to lay the groundwork for an autumn policy shift, after President Mario Draghi last month opened the door to tweaks in a speech that was viewed as unexpectedly hawkish.

"Authorities are expected to prepare the ground for a gradual tapering exercise, which implies slower pace of stimulus rather than reversing course to tighten policy," DBS Bank said in a research note, referring to the ECB meeting.

Most analysts polled by Reuters expect no change in policy, but a sizable minority predicted a tweak in the bank's guidance.

Meanwhile, the Bank of Japan kept monetary policy steady on Thursday as widely expected.

In Southeast Asia, Singapore shares snapped five consecutive sessions of gains and closed about 1% lower, weighed down by financials.

United Overseas Bank fell 2.4%, while DBS Group closed down 1.9%.

Philippine shares gave up early gains to end 0.86% lower, dragged down by industrial and real estate stocks.

Power generator Aboitiz Equity Ventures fell 2.9% to its lowest close in over four-and-a-half months, while SM Prime Holdings dropped 2.8%.

Indonesian shares, however, closed 0.32% higher, with consumer staples and energy stocks leading the gains.

Unilever Indonesia ended 1.6% higher, while Adaro Energy rose 3.12% to its highest close in nearly three months.

Indonesia's real GDP growth is expected to rise to 5.2% in 2017 and 5.6% in 2018, from 5.0% in 2016, Fitch Ratings said.