SE Asia Stocks-Mostly higher, S'pore leads way, Thailand flat

* S'pore leads rally led by property, banks

* Thai shares lose gains, anti-govt protests a worry

* Light trade with Indonesia, Philippines both closed

BANGKOK, April 9 - Southeast Asian stocks ended mostly higher on Thursday on hopes that retail spending may be picking up in the United States, although trade was slow because of market holidays around the region.

Singapore's benchmark index <.FTSTI> rose 2.5 percent, snapping a two-day fall, with property firm CapitaLand <CATL.SI> up 6.4 percent, recouping all of Wednesday's 2.7 percent drop, and DBS Group <DBSM.SI>, Southeast Asia's top lender, up 4.8 percent.

Other big banks also advanced, with Singapore's second-largest, United Overseas Bank <UOBH.SI>, up 3.8 percent on a restructuring plan to improve efficiency [nSIN437584], and Oversea-Chinese Banking Corp <OCBC.SI> up 3 percent.

Stocks were pushed up as optimism about consumer spending and a U.S. plan to shore up life insurers sent Wall Street higher.

In Thailand, Prime Minister Abhisit Vejjajiva said a big anti-government rally would be allowed to continue so long as it was peaceful, but disruption was growing in Bangkok. [nBKK490229]

The main index <.SETI> ended flat at 444.07, failing to join in the tentative rally enjoyed by other Asian markets, as investors were assessing the political situation.

Foreigners, who have returned to the market, judging by their recent share buying, could easily pull out again if the trouble gets worse, analysts said.

"As the local political situation remains risky, while dividend support will end soon and economic deterioration is coming, investors are recommended to do day trades only," KGI Securities said.

Other brokers, however, were more optimistic.

"Despite the continuation of periodic mass protests by the 'red shirts', the Thai political situation now is far more stable than it was last year, and it appears that the government will be able to hang on through the support of its coalition partners for the rest of the year," top broker Kim Eng said.

Gainers in Thailand were energy blue chips, with a 0.6 percent rise in top oil and gas firm PTT <PTT.BK>. PTT Aromatics <PTTAR.BK> rose 3 percent and PTT Chemical <PTTC.BK> 8.9 percent.

In Kuala Lumpur, the index <.KLSE> gained 1.1 percent, ending a two-day decline, buoyed by buying of conglomerate Genting <GENT.KL>, up 3.3 percent, and top lender Maybank <MBBM.KL>, up 1.6 percent.

Malaysia's prime minister of six days announced a new cabinet line-up, appointing reformers untainted by corruption to key economic posts. [nSP496401]

Vietnam <.VNI>, Southeast Asia's worst performer this year, slid 0.65 percent, falling for a second day.

The Philippine stock market <.PSI> is closed for the rest of the week for holidays, and Indonesia <.JKSE> was closed because of elections. Thailand is closed for three days next week. ($1=35.40 Baht)