Most Southeast Asian stock markets traded on a cautious note on Wednesday, mirroring broader Asia as investors awaited a US inflation report that could hold clues on rate hike movements globally.
Investors said the US consumer price readings due later in the day will be key to where stocks move in the short term, given it was the risk of accelerating inflation that sparked the recent global equity rout.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 percent.
"The markets are on tenterhooks awaiting tonight's critical US CPI data. Last week, the market took the uptick in inflation very poorly," said Stephen Innes, head of trading for Asia Pacific at Oanda.
"Will we see a reply to last week's tumult if inflation rears its ugly head? An inflation scare could push Treasury yields much higher and send equities spiralling lower."
The Philippine index dropped as much as 0.8 percent, making it the worst performer in the region, dragged by industrials and financials.
"The PSI is struggling. The currency (peso) is hurting due to expanding trade deficit, but more so traders are worried about more outflow," said Innes.
The country has not been accumulating reserves since 2012, and its central bank projects there was a current account deficit last year and it forecasts a deficit of $700 million this year.
San Miguel Corp was the biggest drag on the main index, slumping as much as 4.6 percent to an over-three-week low.
Singapore shares inched down slightly, as financial stocks weighed.
Singapore's fourth-quarter economic growth was revised lower on a quarter-on-quarter basis on Wednesday, due to a contraction in the manufacturing sector which has come under pressure recently.
Heavyweights Oversea-Chinese Banking Corporation Ltd and United Overseas Bank Ltd reported strong quarterly net profit growth but downgraded their exposure to the weak oil and gas sector, making them the biggest losers on the index.
Malaysia edged down 0.2 percent, with utilities leading the losses, while shares in Indonesia and Thailand inched up slightly.
Vietnam was closed for a holiday.
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