The IMF predicted the global economy to grow at 3.5 percent in 2019 and 3.6 percent in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts, in its World Economic Outlook report released on Monday.
"We do not believe investors are likely to overreact, given softening economic growth in China was well flagged by investors as well as a slowdown in global growth," said Taye Shim, head of research at Mirae Asset Sekuritas, referring to the IMF forecast.
Thai shares were the top performers in Southeast Asia, extending gains into a fifth session on healthcare and energy stocks.
Attributing the rise mainly to Bangkok Dusit Medical Services PCL, Teerada Charnyingyong, an analyst with Phillip Capital Thailand, said, "The major event is the government has been trying to control medical services and medicine prices, and it seems that the companies are proofing their principles… I think investors interpret it as good news."
Shares of Bangkok Dusit Medical, Thailand's largest hospital operator, climbed 5.1 percent, the most since June 20, 2018.
Malaysian shares <.KLSE> climbed for a third straight session and closed at their highest in more than one-and-a-half months.
Among top contributors, Axiata Group rose 1.5 percent to an over three-month closing high, while CIMB Group Holdings Bhd added 1.8 percent.
Among losers, Singapore shares <.STI> fell nearly 1 percent, hurt by telecommunication and financial stocks.
Conglomerate Keppel Corp dropped 2.1 percent, mobile operator M1 Ltd dipped 1 percent and Singapore Press Holdings declined 0.4 percent.
Earlier in the day, Keppel and Singapore Press Holdings said they would not raise their offer price to gain majority control of M1 Ltd, a move that could put pressure on Axiata Group, M1's single largest shareholder.
Financials also declined with DBS Group Holdings Ltd and Oversea-Chinese Banking Corporation Ltd shedding 1.8 percent and 2 percent, respectively.
Meanwhile, the city-state is expected to release inflation data for December on Wednesday. A Reuters poll showed the headline consumer price index probably rose to 0.4 percent in December from a year earlier.
Vietnam shares <.VNI> fell after the previous session's sharp gains, dragged by financial and real estate stocks.
Vietnam National Petroleum Group fell 3.3 percent, while Joint Stock Commercial Bank for Foreign Trade of Viet Nam dropped 1.1 percent.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Subhranshu Sahu)
By Shreya Mariam Job