SE Asian Stocks-Bargain hunting helps Singapore, Thailand

* Singapore, Thailand rebound helped by energy, banks

* Jakarta, Kuala Lumpur down as risk aversion continues

* Government buyback helps shares of Indonesian state-owned firms

JAKARTA, Oct 28 - Shares rebounded in Singapore and Thailand on Tuesday as investors hunting for bargains snapped up heavyil-sold blue chips including Singapore Telecommunications Ltd (Singtel) <STEL.SI> and banking shares.

Singapore's Strait Times Index <.FTSTI> finished 4.1 percent higher after falling as much as 7.9 percent earlier on the day, while Thailand's benchmark index <.SETI> ended 2.7 percent higher.

However, other Southeast Asian market finished in negative territory as risk aversion hit emerging market assets. The Indonesia Composite Index <.JKSE> fell 4.72 percent while Malaysia's key index <.KLSE> fell 3.1 percent.

Philippine stocks <.PSI> slipped half a percent while the Vietnam index <.VNI> fell by nearly 2 percent.

"What is happening in the world is flight to quality. Singapore has been (among) the first to fall. It is now in rebound," Gabriel Yap, senior dealing director at DMG & Partners in Singapore, said.

However, some market watchers were sceptical that the gains would last and did not expect battered Southeast Asian stock markets to recover soon.

"A slew of weak data in America and Europe is likely to hit the market in coming days. The Thai stock market is unlikely to keep this big gain," UOB Kayhian Securities senior analyst Kosin Sripaiboon said.

Singtel finished 17 percent higher while Singaporean banks such as OCBC Ltd <OCBC.SI> and UOB Ltd <UOBH.SI> soared 4.71 percent and 5.46 percent, respectively.

Thailand's PTT Exploration and Production <PTTE.BK> jumped 8 percent after it reported an 84 percent rise in its third-quarter net profit. [ID:nBKK408619]

In Jakarta, one trader said a government share buyback had helped some state firms like cement maker PT Semen Gresik Tbk <SMGR.JK>, which jumped 9 percent, and miner Aneka Tambang Tbk <ANTM.JK>, which soared 8.2 percent.