U.S. President Donald Trump on Friday contrasted reports of officials from U.S. and China agreeing to rollback existing tariffs by saying he had not agreed to such a deal, which sparked fresh doubts over whether the two sides would find a segue in their damaging tariff spat.
Meanwhile, data showed that China's producer prices, a key indicator of corporate profitability, fell the most in more than three years in October, as the manufacturing sector weakened while consumer prices grew at their fastest pace in about eight years.
This "continuous divergence between CPI and PPI further reaffirms the underlying moderating demand," Mizuho analysts said in a note.
"As the government shows higher degree of tolerance on slower growth, evidenced by the absence of resolute steps from the People's Bank of China in terms of easing measures, growth still faces risk of falling to sub-6% next year", they added.
Leading losses in the region, Thai bourse was 0.6% lower as financial and industrial stocks faltered.
Singapore stocks slipped 0.5%, with financials dominating losses on the benchmark. The city-state has a sizable exposure to China.
United Overseas Bank Ltd fell 0.5%, while DBS Group Holdings Ltd dipped 0.2%.
DBS Group, Southeast Asia's largest lender, reported a jump in quarterly profit but flagged a dull 2020 as it now expects revenue and profit next year to grow in low single digits.
Indonesia's main index fell about 0.4%, pressured by banking and telco stocks. Shares of Bank Rakyat Indonesia (Persero) Tbk PT and Telekomunikasi Indonesia Tbk PT dropped over 1% each in the session.
Malaysian shares declined ahead of monthly industrial output data, which is expected to grow by 1%, according to analysts at ING.
Palm oil producer Kuala Lumpur Kepong Bhd and lender CIMB Group Holdings Bhd were the top drags on the index as they fell 2.2% and 0.7%, respectively.
Elsewhere, Vietnam stocks traded sideways.
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SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3248.46 3264.3 -0.49
Bangkok 1627.76 1637.85 -0.62
Manila 8054.27 8065.76 -0.14
Jakarta 6155.597 6177.986 -0.36
Kuala Lumpur 1606.78 1609.73 -0.18
Ho Chi Minh 1021.92 1022.49 -0.06
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3248.46 3068.76 5.86
Bangkok 1627.76 1563.88 4.08
Manila 8054.27 7,466.02 7.88
Jakarta 6155.597 6,194.50 -0.63
Kuala Lumpur 1606.78 1690.58 -4.96
Ho Chi Minh 1021.92 892.54 14.50
By Anushka Trivedi