Trump on Tuesday delivered a stinging criticism of China's trade practices at the United Nations General Assembly, prompting a response from China's top diplomat who said Beijing had no intention to "play the Game of Thrones on the world stage."
The comments rattled wider Asian equities and kept most markets in the region subdued. [MKTS/GLOB]
Since chances of the inquiry into Trump's actions leading to his removal from office are quite low, immediate damage to the markets from his remarks about China would be much more significant than reports of his impeachment, said Joel Ng, an equity research analyst at KGI Securities.
Singapore's benchmark index <.STI> dropped almost 1% to a three-week low and was the biggest loser in the region.
Industrial and financial sectors accounted for most of the losses on the benchmark, with conglomerate Jardine Matheson Holdings falling 1% and lender DBS Group Holdings Ltd shedding 1.2%.
Malaysian stocks <.KLSE> extended loses into a third session.
The country's August inflation came in line with expectations, but analysts warned of price pressures remaining in check due to slowdown in growth.
Thai shares dipped after the country's central bank lowered its 2019 export and economic growth forecast, while holding interest rates steady.
Philippine's benchmark index <.PSI> pared earlier losses to end flat on last-minute buying in financial stocks such as SM Prime Holdings and Ayala Corp.
Elsewhere, Indonesian shares <.JSKE> snapped a four-session losing streak to end 0.1% higher.
(Reporting by Anushka Trivedi in Bengaluru; Editing by Aditya Soni)
By Anushka Trivedi
