In its World Economic Outlook report released on Monday, the IMF predicted the global economy will 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.
Adding to existing concerns of a slowdown, the IMF forecast cast a shadow on investor sentiment sending broader Asian stocks lower. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> fell 0.5 percent, drifting away from a recent seven-week high.
Singapore's index <.STI> dropped 0.4 percent, posting the biggest fall in the region, hurt by financial and technology stocks. DBS Group Holdings Ltd counter fell 1 percent and that of Oversea-Chinese Banking Corporation Ltd declined 0.8 percent.
"The Singapore market has already enjoyed an almost 5 percent rise in 3 weeks. Some side-way movement is expected, especially with U.S. equity futures pointing to some downside when it reopens," said Paul Chew, head of research at Phillip Securities.
The U.S. stock futures were down in the range of 0.7-0.9 percent. The U.S. stocks are set to snap four sessions of gains.
The Indonesian benchmark <.JKSE> - on track to snap a five-session rally - dropped 0.3 percent with telecom and financial stocks driving the index lower.
Shares of Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan dipped 1.7 percent, while those of Astra International Tbk PT shed 1.5 percent.
The Philippine stock market <.PSI> fell marginally, hurt by real estate and financial stocks.
Shares of SM Prime Holdings Inc dipped 1.4 percent, while those of Ayala Land Inc shed 1.2 percent.
However, the Thai benchmark bucked the region's falling trend and rose 0.3 percent, driven by gains in healthcare and energy stocks.
Shares of Bangkok Dusit Medical Services PCL and PTT PCL rose 2.3 percent and 0.5 percent, respectively.
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SOUTHEAST ASIAN STOCK MARKETS As at 0423 GMT
Change on the day
Market Current Previous close Pct Move
Singapore 3209.2 3220.56 -0.35
Bangkok 1592.29 1588.38 0.25
Manila 7994.53 8007.46 -0.16
Jakarta 6429.072 6450.834 -0.34
Kuala Lumpur 1690.66 1692.22 -0.09
Ho Chi Minh 911.53 911.05 0.05
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3209.2 3068.76 4.58
Bangkok 1592.29 1563.88 1.82
Manila 7994.53 7,466.02 7.08
Jakarta 6429.072 6,194.50 3.79
Kuala Lumpur 1690.66 1690.58 0.00
Ho Chi Minh 911.53 892.54 2.13
(Reporting by Shreya Mariam Job in Bengaluru; Editing by xxxx)
By Shreya Mariam Job