* China, Germany, Thailand line up policies to spur growth
* Indonesian shares hit over two-week high
* Thai stocks gain despite Q2 GDP growth slowest in nearly 5 years
By Niyati Shetty
Aug 19 (Reuters) - Most Southeast Asian stock markets gained on Monday, as hopes that central banks around the world would unleash new stimulus to boost growth eased concerns over a global recession.
Such hopes found support from the Chinese central bank's interest rate reforms over the weekend, seen lowering corporate borrowing costs, and reports of new fiscal stimulus in Germany.
The Sino-U.S. trade dispute has dampened growth in Southeast Asian economies, and any policy support by the region's major trading partner - China - to shore up domestic demand will help bring buyers back to the equities market.
Singapore stocks clawed back ground from previous session's losses, supported by financials. Lender Oversea-Chinese Banking Corporation Ltd added 0.8%, while peer United Overseas Bank Ltd gained 0.4%.
Asian markets may gain "on optimism that German if not Eurozone policy stimulus could be forthcoming," OCBC Bank said in a note, adding that, "Singapore may trade firmer between a 3,100-3,150 range amid positive Friday cues from Wall Street."
The Indonesian benchmark index advanced to touch its highest in more than two weeks, buoyed by gains in consumer and financial stocks. Instant noodles maker Indofood CBP Sukses Makmur rose as much as 4.3%, while the Bank Central Asia added 1.2%.
The archipelago's president on Friday proposed $178 billion budget for 2020, that targeted a slightly optimistic gross domestic product growth of 5.3% for the year.
Also soothing markets, U.S. President Donald Trump and top White House officials on Sunday dismissed economic growth concerns, saying they saw little risk of recession. Investors were rattled last week after signals from the bond market sparked fears of a sharp global slowdown.
Thai equities gained 0.8% even as government data on Monday showed the trade-dependent economy grew at its slowest annual pace in almost five years in the second quarter on lower exports and soft domestic demand.
The country's finance minister on Friday, however, said Thailand was planning a $10 billion stimulus package to shore up the slackening economy.
The financial and energy sectors supported Thai shares, with Siam Commercial Bank PCL and conglomerate PTT PCL adding 2.8% and 1.2%, respectively.
The Philippine index and Vietnam shares traded marginally higher, while Malaysian stocks edged down. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0410 GMT Change on the day
Market Current Previous close Pct Move Singapore 3131.98 3115.03 0.54 Bangkok 1637.71 1631.4 0.39 Manila 7813.03 7795.98 0.22 Jakarta 6306.832 6286.657 0.32 Kuala Lumpur 1597.97 1599.22 -0.08 Ho Chi Minh 981.84 980 0.19
Market Current End 2018 Pct Move Singapore 3131.98 3068.76 2.06 Bangkok 1637.71 1563.88 4.72 Manila 7813.03 7,466.02 4.65 Jakarta 6306.832 6,194.50 1.81 Kuala Lumpur 1597.97 1690.58 -5.48 Ho Chi Minh 981.84 892.54 10.01