IMF Managing Director Christine Lagarde on Monday said growth was at its highest level since 2011, but had plateaued, with fewer countries participating in the expansion.
Meanwhile, oil prices hit their highest level since November 2014 on Tuesday and Brent crude was near a 4-year peak.
The Manila index <.PSI> closed 1.2 percent lower as higher crude oil prices worsened inflationary and monetary policy concerns. The real estate sector, led by a 5.1 percent slide in SM Prime Holdings and a 3.2 percent fall in Ayala Land, was the biggest drag on the index.
"The weakness today is due to the continued rise in global oil prices. Philippines being an importer of oil, higher global oil prices could accelerate inflation concerns even more," said Charles William Ang, associate analyst at COL Financial Group Inc.
"The (Philippine) central bank might be forced to raise interest rates to control inflation, and higher interest rates would be bad for equities."
Last week, the Philippine central bank had raised interest rates for the fourth time in five months and had kept the door open for further tightening.
Indonesian stocks <.JKSE> erased early gains and ended 1.2 percent lower as investors looked to reduce their exposure amid a falling rupiah that broke a 20-year low. The currency lost nearly 1 percent to the dollar for the day.
"I think it's more of a sentiment issue. It's beyond Indonesia's control ... all they can do is to counter these internally," said Taye Shim, head of research at Mirae Asset Sekuritas in Indonesia, referring to global uncertainties and factors.
The materials and financial sectors were the biggest drags on the index. Indah Kiat Pulp & Paper Tbk and Bank Mandiri (Persero) Tbk fell 6.3 percent and 3.7 percent, respectively.
Thai shares <.SETI> closed 0.7 percent lower while the Singapore index <.STI> ended 0.4 percent weaker.
(Reporting by Niyati Shetty; Editing by Vyas Mohan)
By Niyati Shetty
