SINGAPORE, Sept 2 — Southeast Asian stocks were sluggish today, tracking subdued US markets overnight, as investors were cautious ahead of a crucial report on how many new jobs the

United States may have added last month, a pointer to how soon the Fed would raise rates.

While US manufacturing remains constrained by the lingering effects of a strong dollar and lower oil prices, sustained labour market strength could push the Federal Reserve closer to raising interest rates later this year.

There is a 36 per cent chance that the rate hike would happen in September, but the fact is that the Fed usually doesn't like to raise rates before the November presidential election, so it may happen in December, said Grace Aller, head of research at AP Securities in Manila.

"Stocks will continue to be muted...Investors will not move a lot before the jobs data today,” she said.

"The movement of the US markets tonight will dictate the movement in the (Asian) markets next week.”

Singapore shares slid 0.3 per cent, their lowest in two months.

Telecom stocks fell the most after Australia's TPG Telecom and two local firms submitted expressions of interest to the Singapore telecommunications regulator in an auction of radio airwaves later this year that is aimed at establishing a fourth mobile operator.

Singapore Telecommunications Ltd, the biggest telecom services provider in Southeast Asia, fell 2.52 per cent.

StarHub Ltd and M1 Ltd lost 4.41 per cent and 5.6 per cent, respectively.

Thai shares fell nearly 1 per cent to their lowest in one week, led by losses in energy and healthcare stocks.

The country's largest hospital operator, Bangkok Dusit Medical Services PCL lost about 1.7 per cent, after it cut full-year revenue growth target to 8-10 per cent from 11-12 per cent due to lower-than-expected growth in the first half.

Philippines rose 0.5 per cent, while Malaysia was flat.

Vietnam was closed for the National Day holiday.

Asian shares marked time before the US report, with MSCI's broadest index of Asia-Pacific shares outside Japan barely changed for the day. — Reuters