Most Southeast Asian stock markets inched lower on Tuesday amid caution over the US midterm elections which would be the first major electoral test of President Donald Trump's big tax cuts and hostile trade policies. Investors generally expect opposition Democrats to take over the House of Representatives while Trump's Republican Party is tipped to retain the Senate.
While political gridlock between the White House and Congress could hinder Trump's pro-business agenda and raise concerns about political instability, some analysts say such an outcome may have already been priced in by investors.
If Trump gains a lot of support from people, he's going to be very aggressive with his trade rhetoric, said Taye Shim, head of research at Mirae Asset Sekuritas.
In Southeast Asia, Philippine shares closed the session half a percent lower after rising as much as 0.9 percent earlier in the day.
Financials were the biggest drags, with Ayala Land Inc dropping 5 percent to its lowest in 1-1/2 weeks.
Thai shares ended slightly lower while Vietnam stocks fell 0.4 percent, dragged by losses in the technology counter.
Thailand's Advanced Info Service fell nearly 2 percent to a 10-month low.
Do Thanh Technology Corp was one of the biggest percentage losers in Vietnam, shedding almost 7 percent to a two-week low.
Indonesian shares closed almost flat, coming off a one-month top hit earlier in the session.
Singapore and Malaysian stock markets were closed for a holiday.
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