Philippine stocks lead regional decline

Philippine shares edged down on Monday as the country's central bank governor warned that a slump in peso reflects investor caution ahead of the US Federal Reserve's next policy decision.

Most other regional markets were down ahead of the first US presidential debate, which will take place early on Tuesday in Asian time zones.

The peso fell to its lowest since 2009 in heavy trading as importers' dollar demand added to downward pressure stemming from stock outflows.

Philippines' central bank governor Amando Tetangco told Reuters on Monday the peso's movements were due to the corporate requirements for dollars and reflected uncertainty about the Federal Reserve's policy path.

"A lot of factors. One, if you look at the region it is very weak. If you look at overall sentiments in the equity market we have high valuations," said Augusto Cosio, president of First Metro Asset Management Inc in Manila.

"And there is a general risk-off sentiment."

The Philippine stock index fell 1.18%, pulled down by financials and industrial staples, as SM Prime Holdings Inc slid 2%, while container terminals operator International Container Terminal Services Inc dropped 5.8%.

Market has experienced net foreign selling in the past weeks, said Philippine Stock Exchange President and CEO Hans B. Sicat, adding, "Our economic fundamentals remain strong and this should continue to help corporate performance moving forward."

Singapore shares snapped the previous session's winning streak. Meanwhile, the country's weaker-than-expected manufacturing output in August rose 0.1% from a year earlier, data showed on Monday.

Malaysia shares dropped marginally, while Indonesian shares pared gains from the previous session.

Bucking the trend, Vietnam climbed 0.44%.