The world's two largest economies imposed fresh tariffs on each other's goods over the weekend, re-igniting worries of a global recession.
U.S. President Donald Trump said U.S. and Chinese officials would meet for negotiations later this month, but they have not been able to agree on a schedule.
With both sides unable to set a date for fresh trade talks, "the uncertainty about the U.S.-China trade continues to rule the markets", ING analysts said in a note to clients.
Markets are "very tentative", said AP Securities analyst Rachelle Cruz, adding that market participants now awaited the next round of tariffs, expected in October, and the outcome of the U.S. Federal Reserve meeting in September.
Philippine stocks <.PSI> closed about 1.4% lower, weighed down by industrials and consumer non-cyclicals.
Conglomerate Alliance Global Group slumped nearly 4%, while infrastructure developer Metro Pacific Investments Corp declined about 2%.
A survey by IHS Markit showed on Monday that growth in the manufacturing sector slowed in August from a month earlier.
Malaysian stocks <.KLSE> fell 1.3% with a survey showing manufacturing performance for August fell fractionally to its lowest since March.
Petroleum products retailer Petronas Dagangan fell more than 6%, and palm oil manufacturer Sime Darby Plantation declined over 4%.
Indonesian shares <.JKSE> shed about 0.5%, weighed down by healthcare and telecom services.
Meanwhile, Singapore's Straits Times Index <.STI> closed the session marginally higher, boosted by utility and industrial stocks, ahead of August manufacturing data expected later in the day.
The data will throw light on the city state's economy, which depends heavily on manufacturing and shipping of electronic products, against the backdrop of a global slowdown.
Sembcorp Industries climbed about 3%, while Jardine Matheson Holdings ended about 1% higher.
(Reporting by Nikhil Subba; Editing by Subhranshu Sahu)
By Nikhil Subba
