China, the biggest trade partner for most of the Southeast Asian countries, said it would encourage share buybacks, mergers and acquisitions by listed firms, and would enhance market liquidity.
Comments by U.S President Donald Trump, who predicted a "great" deal with China in an interview on Fox News, also weighed on sentiment.
Indonesian stocks <.JKSE> recovered from previous session's trough to lead the gains among regional markets. Banking and telecom stocks accounted for most of the gains with Bank Central Asia Tbk closing 1.6 percent firmer.
Thai shares <.SETI> extended gains into a second session, buoyed by commodities sector, with petroleum explorer PTT Pcl adding 1 percent to the bourse.
Malaysian shares pared early gains to close marginally higher.
The country's benchmark index rose on hopes that the government will announce cost-saving measures at its inaugural budget 2019 speech on Nov. 2, said Redza Rahman, head of research, MIDF.
The Malaysian government during it mid-term review said it would cut development spending and rely more on the private sector to spur growth.
A rout in the industrial stocks caused Philippine <.PSI> shares to end 1.3 percent weaker. The index will be closed for national holiday on Thursday and Friday.
"Given the global rise in volatility, I think there is an ongoing sell-off. Foreign investors are especially better off investing in other markets rather than having their money stocked here for two days," said Rachelle Cruz, analyst, AP Securities.
The Philippines market saw net foreign outflows of $17.5 million during the session, according to Refinitiv Eikon data.
Conglomerates SM Investments Corp and JG Summit Holdings Inc each closed more than 1.7 percent lower.
Singapore shares <.STI> ended 0.5 percent weaker, with lender DBS Group Holdings Ltd closing 1 percent lower.
Vietnam shares <.VNI> ended marginally lower, posting their ninth straight sessions of declines
(Reporting by Shanima A in Bengaluru; Editing by Sherry Jacob-Phillips)
By Shanima A
