Most Southeast Asian stock markets declined on Wednesday, tracking Asian peers, after Pyongyang called off talks with Seoul, throwing a major US-North Korean summit into question. Investor sentiment was also subdued as surging 10-year US Treasury yields sparked fears of faster fund outflows from regional equities.
"If bonds are embarked on a journey to higher yields, then the recent outflows from troubled EM (emerging markets) countries could become even greater," ING said in a note.
Asian shares ex-Japan slipped 0.03 percent.
In Southeast Asia, Philippine stocks ended 0.2 percent lower as investors booked some profits following three straight sessions of gains.
Industrial stocks took the biggest beating with SM Investment closing 1.5 percent lower.
Vietnam shares closed 1.8 percent lower after shedding nearly 2 percent in intraday trading.
Meanwhile, Indonesian shares erased early falls to close slightly higher. Losses in consumer stocks were outweighed by gains in the telecom sector.
Unilever Indonesia closed more than 3.5 percent lower, while Telekomunikasi Indonesia rose 3.3 percent.
Bank Indonesia will raise its key interest rate on Thursday to support the rupiah and stabilise domestic markets, a majority of economists in a Reuters poll said.
Malaysia climbed 0.5 percent to close at its highest level in more than two weeks.
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