U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to discuss trade on the sidelines of the G20 summit in Argentina on Saturday, where trade tariffs are expected to dominate the agenda.
However, Trump sent mixed signals on Thursday about the trade deal, saying an agreement was close but he was not sure he wanted one, just as he left for Argentina for a meeting with President Xi.
Meanwhile, China's manufacturing sector stalled for the first time in over two years in November, adding to investor jitters before the pivotal meeting.
China is the top trade partner of most Southeast Asian countries.
Malaysian shares <.KLSE> were the biggest losers in Southeast Asia with a drop of 1 percent, dragged by consumer non-cyclicals and industrials.
Axiata Group Bhd dipped 4 percent, while Sime Darby Plantation Bhd slid 5.4 percent.
For the week, Malaysian shares declined about 1 percent in their fourth straight weekly drop.
Indonesian shares <.JKSE> closed 0.8 percent lower, marking their third session of declines in four.
Financial and material stocks were among the top losers, with United Tractors Tbk PT declining 6.3 percent and Indah Kiat Pulp & Paper Tbk PT shedding 10.3 percent.
For the month, Indonesian shares gained 3.9 percent, their sharpest since January.
Meanwhile, Thai stocks <.SETI> closed higher for a fifth session in six, driven by energy stocks on stronger oil prices.
Brent oil prices firmed on expectations that OPEC and Russia will agree some form of production cut next week.
Industry heavyweight PTT Exploration and Production PCL climbed 2.3 percent, while Siam Commercial Bank PCL rose 1.8 percent.
Singapore stocks <.STI> extended gains into a third session, helped by industrial and telecommunication services stocks. Jardine Strategic Holdings Ltd gained 4.1 percent and Golden Agri-Resources Ltd rose 6.5 percent.
The Philippine stock market <.PSI> was closed for a holiday.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Subhranshu Sahu)
By Shreya Mariam Job
