In Hong Kong, the blue chip Hang Seng Index ended down 86.2 points at 10,662.81. Dealers said investors had begun taking profits in the afternoon session, although underlying sentiment remained positive. "Turnover was quite good and there was more interest than there has been," said Howard Gorges, vice-chairman of South China Brokerage.

Share prices in Tokyo closed just 0.1 per cent higher in hectic trading, giving up most of their early gains when traders lost confidence in the rally, brokers said. "Market participants grew wary of therecent sharp gains, putting pressure on share prices in late trading," said Tsuyoshi Segawa, head of New Japan Securities Co Ltd's equity dealing. The Nikkei-225 gained 22.14 points to close at 15,502.14. The Topix index of all first-section issues on the Tokyto Stock Exchange closed up 8.71 points at 1,196.18.

Singapore share prices closed barely higher as demand for stocks tapered off in late trading after bourses in Hong Kong and Japan came off their highs. The Stock Exchange of Singapore's benchmark Straits Times Index ended 2.2 points higher to 1,471.73, off a high of 1,480.77, while the broader All-Singapore Index fell 2.13 points to 391.90.

"Mostly property stocks were hot on demand," a dealer with a local stock brokerage said amid talk about expected tax relief for developers facing hard times due to the economic downturn.

Malaysian share prices ended 0.9 per cent lower in thin trade amid lingering political concerns on the eve of elections in eastern Sabah state, dealers said. The Kuala LumpurStock Exchange's composite index fell 4.85 points to finish at 523.27, off a low of 517.24 points. A dealer with a local brokerage cited profit-taking for the fall.