A weak yen is again expected to exacerbate Asia's woes. The Japanese currency edged up to 137.20/30 per US dollar this morning having touched near seven year lows around 138.00.Investors in crisis-hit Asian nations are concerned that a weakening yen will hit exports necessary for recovery and spark another spiral of currency devaluations.

With not much good news overnight, traders said Asian markets, which took a hammering on Wednesday, could again tumble, with equity markets leading the way. The Dow Jones industrial average fell more than 150 points at one stage on Wednesday but bounced to finish only 27.16 points or 0.30 per cent down at 8,936.57.The negative sentiment on the New York Stock Exchange was reflected in the overwhelming number of stocks marked down to those bought -- 2,168 to 872. Andas the sun rose across the Pacific, the sell-off continued with the New Zealand market shedding 1.15 per cent in the first 40 minutes.

The NZSE40 Capital index was down 25.24 points at 2,196.79 at 2200GMT.The Australian stock market opened cautiously higher, with the All Ordinaries index 6.8 points firmer at 2,693.8 by 10.15 am (0015 GMT) on a turnover of A$66.3 million. Traders said the slight rise was on the back of Wall Street's late rally, which might indicate a possible overreaction to Asian woes.But the Australian dollar looked bound for historic lows, after making a fresh 12-year trough offshore, hostage to Asia. At 10.25 am (2225 GMT), the hapless currency was at US$0.6223/28, having been down to $0.6165, its lowest level since September 1986, from $0.6195/00 late here on Wednesday.

Australian bonds yields rose slightly in early trading as the market gave up some ground after Wednesday's rally to historic lows as trading conditions calmed.But all eyes were on Asia and the opening of the Hong Kongand Tokyo markets. The Nikkei 225 firmed 141.05 points to 15,805.34 in early trade, but South Korea's main index fell 1.25 per cent to 309.57.

Hong Kong chief executive officer Tung Chee-hwa on Wednesday sent shudders throughout Asian financial markets and boardrooms when he warned the territory faced negative economic growth for the first time in 13 years. His comments triggered a rout on the Hong Kong stock exchange, with the blue chip Hang Seng Index closing collapsing nearly 500 points to close 5.36 per cent down at 8,983.42.Meanwhile panic on Russian markets, which prompted Moscow into a drastic interest rate hike on Wednesday, was also making Asia nervous.