Thai index tops gain; Vietnam down after Moody's downgrade

BANGKOK, Sep 28 (Reuters) Most Southeast Asian stock markets rose on Friday, racking u p strong gains for the quarter, as global markets welcomed Spain's spending cuts, but Moody's downgrades dented Vietnam's banks and the broader Ho Chi Minh Stock Exchange's VN Index.

Thailand's benchmark SET index led the pack, rose nearly 1 percent to end at its highest close since May 1996. It posted a 10.8 percent gain for the July-September quarter, Southeast Asia's best, reversing a 2.1 percent loss of the previous quarter.

Optimism over Thai banks' earnings for the third quarter boosted buying interest, said Bangkok-based strategist Viwat Techapoonphol of Tisco Securities.

Among actively traded, Bank of Ayudhya Pcl rose 3.3 percent, snapping a six-day losing streak. It was under selling pressure early this week after a stake sale by shareholder General Electric Co The Ho Chi Minh Stock Exchange's VN Index reported a 7.1 percent quarterly fall, the region's worst, adding on a 4 percent fall for the second quarter.

On Friday, Moody's Investors Service downgraded Vietnam's sovereign credit rating by one notch to B2, citing stresses in the banking industry. It cut local and foreign currency deposit ratings of all eight Moody's-rated Vietnamese banks.

Among losers on Friday, Vietcombank fell 2 percent while Military Bank was down 0.75 percent.

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Thai index tops gain; Vietnam down after Moody's downgrade