Federal Reserve officials on Tuesday pushed back on market expectations and presidential pressure for the central bank to deliver a significant U.S. interest rate cut of half a percentage point as soon as its next meeting.
"Fed Chairman (Jerome) Powell threw a curveball the market was not expecting, talking down the chances for a rate hike in July as he indicated he was still gauging the impact of the ongoing trade war on the US economy," ING said in a note.
Philippine's benchmark fell the most in the region, with industrials dragging the index.
Shares of SM Investments Corp and Aboitiz Equity Ventures Inc shed 1% and 1.6%, respectively.
The Thai index closed relatively flat after the country's central bank held interest rate steady for the fourth straight meeting.
The Bank of Thailand cut its forecasts for 2019 economic growth and exports for the third time in six months. It now expects 2019 economic growth of 3.3%, rather than the 3.8% seen three months ago.
Singapore's index edged marginally lower, declining for the third straight day, with shares of information technology firm Venture Corporation Ltd falling the most.
Singapore's industrial production fell slightly more than expected in May from a year earlier as electronics output continued to drag.
Amid a global tech slump and prolonged Sino-U.S. trade tensions, the export-reliant city state has taken a heavy hit.
Declines on the Malaysian benchmark index were mostly concentrated among utility stocks, with state-utility firm Tenaga Nasional Bhd dropping 1.6%.
Malaysia's annual inflation rate in May remained unchanged at 0.2% for the third month in a row.
The Indonesian benchmark reversed course to end the session 0.2% lower.
Shares of Bank Central Asia Tbk Pt and Astra International Tbk Pt were the biggest drags on the index, losing 0.8% and 1.4%, respectively.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Rashmi Aich)
By Shreya Mariam Job
