Southeast Asian stock markets fell on Thursday, as the United States widened its trade war with tariffs on European Union goods, adding to fears over a global economic slowdown. The World Trade Organization gave Washington a green light to impose tariffs on $7.5 billion worth of EU goods annually, which threatens to ignite a tit-for-tat transatlantic trade war.

The global economy is already reeling from the Sino-US trade war and with the new front to tariff dispute, demand and slowdown woes are expected to deepen.

Philippine shares declined 0.9% to their lowest close in more than 4-1/2 months, weighed down by real estate and financial stocks.

Ayala Land shed 4.3% to a near six-month closing low, while Metropolitan Bank and Trust Co dipped 1.7%.

Shares in trade-reliant Singapore dipped 0.5% on the back of losses in industrials and financials.

Jardine Strategic Holdings Ltd slumped 1.7% to an over three-year closing low, while DBS Group Holdings Ltd, the city-state's biggest listed lender, slipped 0.8%.

Meanwhile, financials dragged Malaysian shares 0.7%lower, with Public Bank Bhd extending losses into a third session to close at its lowest in more than three years.

India and Malaysian equities were the most expensive in Asia on October 2, based on their price-to-earnings valuation metrics, according to Refinitiv. Malaysia's price-to-earnings ratio was 15.66, the second highest in Asia.

Indonesian shares closed lower for the fifth consecutive session, dragged down by financials. Bank Mandiri and Bank Rakyat Indonesia shed 1.9% and 3.1%, respectively.

Copyright Reuters, 2019