Indonesian stocks dropped the most in the region after data showed China's industrial output grew significantly slower than expected in October, reinforcing views that long-drawn trade war with United States is taking a toll on the world's second-largest economy.
An interim deal to de-escalate the tariff dispute appeared elusive, with trade negotiations between Washington and Beijing hitting a snag over farm purchases, according to the Wall Street Journal.
"The latest news added to the sense that the path to any trade deal remains riddled with uncertainties and contributed to the relatively lower market risk appetite," OCBC analysts said in a note.
Financials and telco dominated the losses in Indonesia, where the benchmark index traded 0.9% lower at a five-week trough.
Lenders Bank Central Asia Tbk PT and Telekomunikasi Indonesia Tbk PT slipped 1% and 2.7%, respectively, and were the biggest drags on the main index.
Philippine's main index slipped as much as 0.8% to a near four-week low ahead of a central bank meeting.
Bangko Sentral ng Pilipinas looks certain to leave its policy rate unchanged after stronger-than-expected economic growth in the third quarter and with inflation likely to remain tame in the coming months, a Reuters poll showed.
Property developer Ayala Land Inc and electricity retailer Aboitiz Equity Ventures Inc were among the top losers on the index.
Ayala Corp, Philippines' largest conglomerate, fell 1.5% to an over two-and a half-year low after it said it will invest $237.5 million in Myanmar's Yoma Group in search of growth in multiple sectors.
Singapore shares slipped 0.3%, with heavyweight United Overseas Bank Ltd dipping 0.8%, while Jaridne Matheson Holdings Ltd shed 1.7%.
Thai shares were lower after the central bank said it would lower the country's economic growth forecasts for this year and next, and that monetary policy action to support the economy was still in play.
Shares in Vietnam, which has benefited from the Sino-U.S. trade war, edged up slightly.
By Anushka Trivedi