Most Southeast Asian stock markets fell on Wednesday, with Philippine shares recording their worst fall in two weeks, as investors awaited a US Federal Reserve rates review and key Sino-US trade talks. The Fed is widely expected to leave rates unchanged on Wednesday, as policymakers had made it clear that they plan a "patient" pause in rate hikes. The central bank is taking a wait-and-see approach to further tightening in the face of a global economic slowdown, US federal government shutdown, trade tensions and waning business and consumer confidence.

Adding to investor caution is the start of a crucial round of Sino-US trade talks on Wednesday and Thursday. Philippine shares fell as much as 1.7 percent on profit-taking before recovering partially to close 0.9 percent lower. "We are seeing sales of shares of companies with large institutional following, investors are now being cautious about what will happen in the US Fed meeting," said Rachelle Cruz, a research analyst at AP Securities in Manila.

Index heavyweights BDO Unibank Inc and SM Prime Holdings lost 2.4 percent and 1.5 percent, respectively, while Premiere Entertainment closed at its highest level since November 1997. Malaysian shares fell 0.4 percent, dragged by utility and basic material stocks. Effects of the Sino-US trade war were seen with data showing Malaysia's exports to China, a major trading partner, contracted 0.5 percent annually in December, while shipments to the United States surged 13.5 percent.

Singapore shares closed 0.4 percent lower, with DBS Group Holdings and Singapore Press Holdings falling 1.2 percent and 2.4 percent, respectively. Meanwhile, Thai shares gained 0.5 percent, with PTT Exploration and Production emerging as the top boost to the index after the company posted an 88.6 percent rise in full-year profit. PTT Exploration and Production rose 2.1 percent, while Airports of Thailand gained 1.5 percent.

Copyright Reuters, 2019