Most southeast Asian stock markets ended lower on Wednesday tracking losses in Asian peers following a weak handover from Wall Street, while Vietnam rose as consumer staples and utilities firmed up. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.5 percent, pulling back from a two-year high hit on Monday.
The S&P 500 index posted its biggest one-day drop in about six weeks on Tuesday and closed at its lowest point since May 31 after US Senate Republican leaders postponed a vote on a healthcare overhaul. The new legislation proposes to repeal major elements of Obamacare and shrink the Medicaid government healthcare program for the poor.
"We're trying to see how the Trump administration will be reacting to this news, but I think it's showing that there is no solidarity or that Trump cannot really hold onto his government," said Mikey Macanaig, an analyst with Sunsecurities Inc. Vietnam shares ended 0.2 percent higher with Vietnam Dairy Products climbing 1.2 percent and Vinacafe Bien Hoa gaining 6.8 percent. Petrovietnam Gas Joint Stock Corp rose 1.6 percent
Malaysia shares closed at their lowest in nearly one month, with the consumer discretionary sector accounting for most of the losses. Genting Malaysia Bhd and Genting Bhd lost 4.1 percent and 2.3 percent, respectively. Singapore shares edged down 0.1 percent as index heavyweights HongKong Land Holdings and Jardine Matheson Holdings fell 1.6 percent and one percent, respectively.
"Singapore tech stocks fell tracking the global easing in technology stocks," Singapore-based Net Research Asia said in a note. On Tuesday, the S&P 500 Information Technology sector fell 1.7 percent to an over one-month closing low. Philippine shares fell 0.2 percent lower with SM Prime Holdings and Metropolitan Bank and Trust down 0.9 percent and 1.6 percent each.
The country has been affected by a violent unrest in the southern state of Marawi where some 71 security forces and 299 militants have been killed and 246,000 people displaced in a conflict which erupted after a failed attempt on May 23 to arrest a Filipino militant commander backed by Islamic State's leadership. Indonesia's financial markets were closed on account of a national holiday.