South Korea, China, Taiwan fall most after Wall Street sell-off

South Korea, China and Singapore led emerging Asian stock markets lower on Thursday after worries about excessive valuations led to a selloff on Wall Street, supporting gains in the safe-haven dollar at the expense of regional currencies.

Stock markets in Jakarta and Taipei joined those in Seoul, Singapore and Shanghai in declining more than 1% after Wall Street suffered its biggest one-day percentage drop in three months overnight.

Also on Wednesday, the US Federal Reserve flagged a worrying slowdown in the pace of recovery of the world's top economy, pledging continued support until a full economic rebound is in place.

"Fear of the retail marauders seems to have spilled into Asia this morning," Maybank analysts wrote in a note.

An influx of amateur traders and a flood of liquidity have also boosted shares in Asia, stretching valuations. South Korea is up nearly 7% this year, on top of the 30%-plus jump last year.

Investors in the Philippines found less reason to join the regional selling pressure given the local stock market is the worst regional performer so far this year, down nearly 4%.

GDP data showed the Philippine economy shrank 8.3% in the December quarter, slower than the 8.5% expected in a Reuters poll. Stocks on Thursday edged 0.1% higher.

However, for 2020, the economy recorded its biggest contraction ever, falling 9.5%.

Worries around the pace of a global recovery have supported the dollar, which in the lead up to 2021 had been falling.

The won fell nearly 1%, while the rupiah - favoured by foreign investors looking to tap Indonesia's high-yielding debt - dropped 0.3%.

Malaysian markets were closed for a public holiday.