Southeast Asian shares extended losses on Wednesday as the investor sentiment took a hit after the IMF said risks to the global financial system could increase sharply.
Philippine shares fell 1.0 per cent to a three-and-a-half-month low after data showed a persistently wide trade gap for August, while Singapore stocks fell again.
New IMF research also shows emerging market countries excluding China could face debt portfolio outflows of up to $100 billion, a level last seen during the 2008 global financial crisis.
The Philippine stock index declined for a fourth session in five and breached the 7,000 level for the first time since June 27.
Industrial and real estate stocks were the top losers, with JG Summit Holdings sliding 2.1 per cent and Ayala Land declining 1.8 per cent.
Singapore shares hit their lowest since Sept. 19, ahead of the central bank's policy review on Friday where a slim majority in a Reuters poll of economists predict a tightening.
Financials were the top losers with DBS Group Holdings shedding as much as 1.1 per cent, while Oversea-Chinese Banking Corporation slipped 0.6 per cent.
Malaysian shares fell 1.0 per cent, extending losses into a sixth session, weighed down by Axiata Group and Tenaga Nasional.
Meanwhile, Thai shares rose over 1.0 per cent, boosted by energy and financial stocks, after closing marginally higher following a five-session losing streak.
Recent falls seem to have made Thai equities less expensive as well as retail investors who look to invest long-term for tax benefits, said Teerada Charnyingyong, an analyst with Phillip Capital Thailand.
PTT PCL gained 2.4 per cent, while PTT Exploration and Production advanced 2.4 per cent.
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