Adding to the steep sell-offs since Friday, the yield curve remained inverted, though the 10-year US Treasuries yield inched up to as high as 2.432% from Monday’s 15-month low of 2.377%, leaving the markets nervous about the economic slowdown.

“Overall, there are worries about US curve inversion, and I think that’s the reason people are concerned,” said Joel Ng, an analyst at KGI Securities.

“There is still a little cautiousness in the market, and at this moment we don’t see much participation in the market too, the volumes aren’t that great.”

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2%.

Leading the losses in the region, the Philippine benchmark declined about 0.4%, hurt by financials and industrials stocks. Shares of Metropolitan Bank and Trust Co fell as much as 2%.

The Malaysian index fell nearly 0.5% to its lowest since Dec 20, before paring some of the losses. Banking stocks were among the biggest drags on the index with Public Bank Bhd dropping 1.2% and CIMB Group Holdings Bhd falling to its lowest in a year.

Meanwhile, data from the US showed that consumer confidence declined in March with homebuilding falling more than expected in February, pointing towards a slowdown in economic activity.

“Soft economic data reminded us that a global cyclical downswing is hitting the US as well, although to a lesser extent,” said Margaret Yang, markets analyst at CMC Markets, Singapore, in a note.

In Indonesia, consumer staples and real estate stocks weighed most on the benchmark index. It fell 0.2%.

However bucking the trend, the Vietnam index rose 0.6%, helped by real estate stocks.

Yesterday, Vietnam Ministry of Planning and Investment said the country received $4.1 billion in foreign direct investments in the first quarter of this year, up 6.2% from a year earlier.

Singapore’s index was up 0.3%, buoyed by financials stocks. United Overseas Bank Ltd rose as much as 1% while DBS Group Holdings Ltd added 0.6%.