The departure of economic adviser Gary Cohn sparked renewed worries Trump may go ahead with his proposed import tariffs on steel and aluminium.
SINGAPORE: Most Southeast Asian stock markets fell on Thursday, in line with global equities, after the U.S. Federal Reserve chairman's remarks cooled expectations of a rate cut, while Philippines gained after S&P Global upgraded the country's credit rating.
The U.S. Federal Reserve on Wednesday held interest rates steady and signaled little appetite to adjust them any time soon, taking heart in continued job gains and economic growth and the likelihood that weak inflation will edge higher.
"Chair Powell delivered a not-so-dovish delight for equity markets," said Stephen Innes, managing partner and head of trading, SPI Asset Management.
Global equity markets had seen sharp gains earlier this year after a dovish Fed turn and on increasing likelihood of a U.S.-China trade deal.
"Equity markets were looking for so much more from the Fed, and were shocked when Chair Powell said the Fed did not see a convincing case to move rates in either direction," he added.
Indonesian stocks dropped 0.8 percent and led losses in the region as financials faltered.
Bank Danamon Indonesia Tbk PT slumped as much as 15 percent to its lowest since March 15, while Bank Negara Indonesia (Persero) Tbk PT dropped 3.1 percent to an over five-week low.
Singapore shares marked their worst session in more than five weeks, with Southeast Asia's biggest lender DBS Group Holdings Ltd dragging the city-state's benchmark with a 2.3 percent slide.
Malaysian stocks and Vietnam shares weakened 0.3 percent each.
However, Philippines shares gained 0.6 percent after S&P raised the country's long-term rating to "BBB+" on strong growth trajectory after market hours on Tuesday.
Equity markets in Philippines were closed on Wednesday.
"This should lift investor sentiment and spur inflows into Philippine assets," Maybank analysts said in a note.
Universal Robina Corp, the biggest boost to the index, surged up to 6 percent to its highest in more than a year. The food and beverage company reported a near 3 percent rise in first-quarter net income.
Thai shares hit their highest since April 22 on gains in consumer and energy stocks.
Index heavyweight PTT PCL firmed 0.5 percent, while retailer Siam Makro PCL rose to its highest in almost two weeks.
Thailand's inflation annual headline consumer price index rose 1.23 percent in April, slightly higher than a Reuters poll forecast but within central bank's target range of 1 percent to 4 percent for a second consecutive month. - Reuters
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