Equities worldwide benefited last week from New York Fed President's dovish comments that hinted at a half-point rate cut this month, but hopes were thwarted when his speech was recanted and qualified as "academic" rather than a policy suggestion.
Wall Street Journal's report on Friday that the U.S. Federal Reserve was likely to cut rates by 25 bps dashed expectations further.
Markets "will likely trade with a more risk cynical bent this week as the less dovish Fed narrative continues to sink in" said Stephen Innes, managing partner at Vanguard Markets, in a note.
Leading the declines, Philippine shares posted their sharpest intraday drop in over three weeks, dented by financials and utility stocks. The biggest laggards in the index - Bank of the Philippine Islands and power generator Aboitiz
Equity Ventures Inc lost more than 2% each.
The Singapore index also edged lower, with real estate giant Capitaland Mall Trust falling 1.5% and lender United Overseas Bank Ltd shedding 1.1%.
Indonesian shares dropped most in nearly two weeks with losses being dominated by consumer stocks. Unilever Indonesia Tbk PT dropped 1.3%, while the country's second-largest cement maker Indocement Tunggal Prakarsa Tbk PT shed 1.4%.
Meanwhile, Thai shares dipped shortly after data showed the country's customs-cleared exports declined for a fourth straight month in June, down 2.15% from a year earlier, while imports also contracted for the period.
Losses mainly stemmed from the industrial sector as Bangkok Expressway and Metro PCL subsided 2.7%, while Airports of Thailand PCL traded 1% lower.
Malaysian shares shed previous session's gains to edge 0.3% lower as losses in telco and financial sectors weighed. Telecom services provider Maxis Bhd skid
1.2%, while lender CIMB GROUP HOLDINGS BHD declined 1%.
Bucking the trend, the Vietnam benchmark index edged a tick higher.- Reuters
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