Kuala Lumpur shares tumbled 21.5 per cent as investors locked in profits on the massive gains which followed last week's imposition of dramatic foreign exchange controls and the sacking of deputy premier Anwar Ibrahim.

Hong Kong shares rose 1.4 per cent, Tokyo and Singapore each ended 0.8 per cent higher while Taipei advanced 2.1 per cent.

Thai shares dropped 3.5 per cent, Jakarta fell 1.6 per cent and Seoul ended barely lower. Regional markets had their sights fixed on Wall Street to see how it performs following last week-end's comments by Fed chairman Alan Greenspan hinting at a US interest-rate cut, dealers said. The US market was closed Monday for Labour Day. In Kuala Lumpr, Malaysian stocks plunged as investors locked in profits and foreign sellers dumped shares.

Investorswho previously traded Malaysian shares on Singapore's over-the-countermarket, the Central Limit Order Book (CLOB) International, were also starting to sell on the local bourse, they added.The Kuala Lumpur Stock Exchange 100-share weighted composite index plummetted 95.50 points to end at 349.56 points, erasing the 81.62-point rise it posted Monday on heavy local buying.

The index had gained some 57 per cent in a rally that began Wednesday and pushed stock prices up to artificially high levels following the imposition of drastic currency controls and the sacking of deputy premier and finance minister Anwar Ibrahim .

The market opened slightly higher Tuesday but slid into negative territory after 11 minutes of trading and went all the way down as players scrambled to cash in their shares, dealers said.

``Foreign selling has started. There was already a bit of that late yesterday. Today there is more,'' an institutional dealer at a local brokerage said.

``They wanted to clear positions since the forexcontrols were placed but were prevented by technicalities. They have about worked that out and are now selling,'' she said.

Hong Kong: Hong Kong share prices rose 1.4 per cent to a six-week high amid stable inter-bank rates after the government introduced new measures to deter speculator s, dealers said. The key Hang Seng index gained 112.49 points to close at 8,189.25, following a 7.9-per cent surge in the previous day's trade after the goverment moved to boost liquidity in the banking system. Dealers said sentiment was also boosted by gains on the Tokyo market amid a stronger yen.

Tokyo: Tokyo share prices closed 0.8 percent higher as profit-taking eroded some early gains from strong buying by overseas funds for the second straight day, brokers said. The Nikkei stock average met strong resistance after topping 15,000 points for the first time in two weeks while investors closed out positions as Wall Street prepared to open after the three-day Labor Day weekend, they said. The key 225-issueNikkei index ended the session 123.43 points higher at 14,913.49 following a 5.3 per cent, 747.15-point jump the previous day, helped by the yen's rally against the dollar.

Singapore: Singapore's key share index rose 0.8 per cent but ended off its earlier high as regional currencies weakened and profit-taking ensued after the previous day's sharp gains.

A dealer with a European brokerage said the market came off its highs as hedge funds which have been buying shares on short-covering took profits. The Straits Times index rose 6.58 points to 868.68, off a high of 894.53. The AlL-Singapore index was up by nearly four-tenths of a point to 269.49.

Bangkok: Thai share prices dropped 3.5 per cent amid profit taking in the banking and finance sectors, compounded by regional market declines, analysts said. ``The market was not able to stay above the 220-point mark, prompting investors to cash in profits,'' United Securities Chief analyst Somsak Bunsupaporn said. The Stock Exchange of Thailand(SET) composite index fell 7.71 points to close at 212.85 points, while the select SET 50 was down 0.69 points to 14.24 points.

Jakarta: Indonesian shares closed 1.6 per cent lower on profit-taking amid concerns over student protests and mixed regional markets, dealers said.``In this situation, investors do not want to hold shares for long,'' a dealer with a local brokerage said, citing Monday's protest by students demanding the resigna tion of President B J Habibie. The Jakarta Stock Exchange composite index was down 5.397 points at 330.413.

Seoul: South Korean shares inched down as earlier gains gave way to broad-basedprofit-taking, dealers said. ``Despite strong futures-linked programme-buying, the market turned weaker later in the session on retail selling largely aimed at taking profits after recent gains,'' an analyst said. The Korea Stock Exchange index closed down 1.87 points at 326.35, off a low of 324.77. The benchmark corporate bond yield was up at 12.55 percent.