Singapore stocks fell more than 1.5% on Monday ahead of major bank earnings, while softer inflation data lifted Jakarta shares.
The Straits Times Index slid as much as 2% to its lowest since early July, dragged down by banks ahead of DBS and OCBC results. The index is now nearly 10% below its early-September record high.
"With earnings approaching, elevated valuations leave the (banking) sector more sensitive to any disappointment in the earnings outlook," said Gary Tan, portfolio manager at Allspring Global Investments.
"We still see Singapore retaining its appeal as a defensive safe haven within Asia, so we view this is less about a deterioration in the broader outlook and more about valuations after a strong rally," Tan added.
Indonesian stocks swung into positive territory after falling over 1% earlier in the day. Data showed that Indonesia's annual inflation rate slowed slightly to 3.23% in October, from 3.28% in September.
The rupiah weakened to 18,160 per US dollar, hovering not far above the record low of 18,190 touched in early June.
Indonesian assets remain under pressure after MSCI warned of a possible market reclassification, with Jakarta stocks among the world's worst performers this year as regulators rush to meet investor demands for reform.
MUFG analysts said the rupiah faces risks from high US yields, rising oil prices straining trade and fiscal balances, and persistent portfolio outflows, rather than inflation alone. Investors await third-quarter growth data later this week.
South Korean shares rose 2.5%, with dip-buying in technology stocks helping the market look past the AI-driven selloff on Wall Street on Friday after weak results from Intel and Amazon.
Data showed South Korean exports nearly doubled in October, marking their sharpest increase in more than five decades, as strong global demand for AI investment boosted chip shipments.
MSCI's emerging-market currency index slipped 0.1%, with the Taiwan dollar down 0.6% and the South Korean won weakening to 1,342.4 per U.S. dollar.
MUFG analysts said favourable economic conditions continued to support both currencies, though persistent foreign equity selling had eroded some of that support.
Investors await inflation data from Thailand, the Philippines, South Korea and Taiwan this week. The Thai baht was little changed, while stocks fell 0.4%.
The Philippine peso was flat, with equities closed for a public holiday.
Malaysia's ringgit weakened to 4.067 per U.S. dollar ahead of Thursday's central bank meeting, where rates are expected to stay at 2.75%. - Reuters
