U.S.-China trade talks made "good headway" last week in Beijing and the two sides aim to bridge differences during talks that could extend beyond three days this week, White House economic adviser Larry Kudlow said.
Philippine stocks closed 0.52 percent lower, weighed down by financials, ahead of the March inflation data on Friday.
Philippine inflation likely slowed for a fifth straight month in March, a Reuters poll showed. The consumer price index is forecast to have risen 3.5 percent in March from a year earlier, below the previous month's 3.8 percent and the lowest since January 2018.
The slowing inflation is expected to lead to the central bank reversing some of last year's policy tightening to support economic growth.
Shares of Bank of the Philippine Islands and Ayala Corp dropped 3.6 percent and 2.2 percent, respectively.
Malaysian shares edged higher despite a fall in the country's February exports.
Malaysia's exports fell sharply in February, the first contraction since August as trade slowed with most of its partners, government data showed on Thursday.
"Alongside signs of constructive U.S.-China talks, this (uptick in Purchasing Managers Indices (PMI) from U.S., China and the region in March) could help Malaysia's exports and industrial activity turn the corner in 2Q 2019," a note from UOB said.
Meanwhile, Malaysia will sell a superyacht allegedly bought with stolen funds from state fund 1MDB to casino operator Genting Malaysia Bhd for $126 million, in the first major asset sale by Kuala Lumpur to recover billions lost from the fund.
Shares of Genting Malaysia slipped 0.9 percent.
In Singapore, Genting Singapore Ltd shares plunged 9.4 percent to a three-month low, after the casino operator unveiled a S$4.5 billion ($3.3 billion) expansion plan and the government said it would hike casino entry prices and taxes, capping gains in the benchmark index.
(Reporting by Shreya Mariam Job in Bengaluru;; Editing by Gopakumar Warrier)
By Shreya Mariam Job
