* Thai stocks recoup loss; political concerns linger
* Malaysia at 2-week highs; palm oil stocks up
* Beaten Philippine shares bounce back
By Viparat Jantraprap
BANGKOK, Feb 7 (Reuters) - Most Southeast Asian stock markets were weaker to flat on Monday as investors cashed in on recent gains in energy-related stocks and financials, helping pull Singapore and Indonesia shares off their two-day highs.
Market volume was generally light as the improving U.S. economy sapped appetite for the emerging markets. Indonesia and Thailand each saw its turnover around two-thirds the 30-day average.
Shares in Indonesia and Singapore failed to hold early gains, easing 0.6 percent and 0.2 percent respectively. Bargain hunters earlier entered the markets on technical-led buying, dealers said8.
Philippine and Thai shares both erased early losses to end a tad higher. Philippine shares were the region's worsts performer last week.
Southeast Asian bourses saw fund outflows this year in a rotation out of emerging markets, driven by concern about valuations and the implications of higher inflation.
Indonesia's higher-than-expected economic growth of 6.9 percent in the fourth quarter of 2010 prompted market investors to expect more interest rate increases this year after the central bank's surprise move to tackle inflation by hiking rates from a record low last week.
Asian stocks clung to early gains as the U.S. job market showed further signs of recovery, highlighting a brighter outlook for its economy. The MSCI index of Asia and Pacific shares excluding Japan was up 0.2 percent by 0940 GMT.
Singapore-based Najeeb Jarhom, head of research at broker AmFraser Securities, said technical signals pointed to further upside for Singapore's Straits Times Index, with a 2011 fiscal budget announcement this month, partly helping to trigger buying.
"The cue seems to be investors are holding on to positions in anticipation of pleasant surprises on the earnings, GDP and budget fronts, which may not have been fully discounted," he said.
In Bangkok, the main SET index moved in negative territory for most of the day amid escalation in Thai-Cambodian border tensions and as 'yellow shirt' activists plan a rally on Friday, seeking to oust the Democrat-led government.
Shares in Thai firms which have businesses in Cambodia fell, led by a 1.8 percent loss to 5.5 baht in shares in satellite firm Thaicom, with its telecom service in Cambodia contributing 10 percent of revenue, said broker Capital Nomura Securities.
PTT Exploration and Production fell 0.8 percent, erasing a nearly 6 percent surge on Friday after it said it would resume operations at its Montara oil field off Australia in the fourth quarter after the Australian government gave it the go-ahead.
Profit taking hit energy and bank stocks in the region, pulling Indonesia's coal miner Adaro Energy down 2 percent and Philippine Energy Development easing 0.5 percent. Singapore United Overseas Bank fell 1 percent.
In Kuala Lumpur, buying interest in palm plantation stocks helped pushed the Malaysia's main index to two-week highs along with rising Malaysia's palm oil futures, led by a 5.1 percent gain in Kuala Lumpur Kepong. (Editing by Jason Szep)