Philippine stocks and the peso declined on Tuesday as investors fretted over a worrying combination of accelerating inflation and an economic recession.

The peso fell 0.3% to 49.48, while stocks dropped 0.4% as data showed the consumer price index (CPI) for May rose 4.1% and the six-month average of 4.4% came in above the central bank's target band of 2%-4% for 2021.

The peso hobbled near one-year lows while its peers made only minor gains as rising crude prices weighed on currencies of most oil importers in the region. The Indonesian rupiah and the Singapore dollar ticked up 0.1% each.

Like its Asian counterparts, the peso had been on a downtrend since the Federal Reserve's June meeting when it surprised markets with a hawkish shift.

Nicholas Mapa, senior economist at ING, said the peso was on the back foot as economic data continued to point to a sluggish recovery even as the country reeled with a high virus case load.

The Southeast Asian nation in May lowered its economic growth targets for this year and next after a deeper-than-expected contraction in gross domestic product in the first quarter.

In other markets, Singapore stocks rallied 1% with travel and leisure firms leading gains as the city-state's gradual pullback from virus curbs and fast paced vaccination fuelled hopes of a solid economic recovery.

Citi analysts in a note predicted GDP growth of 7% in the second half, aided by exports as broader economic activity in Singapore reached pre-COVID levels earlier than expected.

Thai stocks rose 0.7%, shrugging off news the country's government was considering tax on share sales by individual investors.

Elsewhere, in a key policy meeting, Reserve Bank of Australia said it would pare back its bond buying programme as the country's economy continued to strengthen.