Philippine share prices fell 1.9 per cent Monday, weighed down by a volatile peso and fears of a possible rate increase in the United States, brokers said. The peso's weak opening Monday `is a contributory factor' in the market's performance, said Oliver Plana, of Asiasec Equities. Investors are also expected to `exercise caution' until August 24 when the policy-making Federal open market committee meets to decide on interest rates, he added.

``The wage data (in the US) showed that the Fed might be inclined to hike interest rates,'' he said. The Philippine Stock Exchange composite index dropped 43.34 points to close at 2,255.30. South Korean share prices rose 1.1 per cent Monday, led by semi conductor and financial stocks on bargain-hunting.