US Federal Reserve Chairman Alan Greenspan disappointed investors when he gave no hint to Congress that US interest rates were about to come down in the face of global economic stagnation. The Fed Chief dashed hopes that in the face of economic paralysis in parts of Asia and Russia, a concerted move by industrialized countries to ease credit was in the offing.

Investors and finance officials had been eagerly awaiting a signal from the Fed chairman, notably after President Bill Clinton on Monday described stagnant growth rather than inflation as the world's principal economic woe.

Japanese share prices dipped 2.4 per cent to a 12-year closing low as crucial legislation to rescue the banking sector was delayed.

Hong Kong fell 3.6 per cent, Singapore ended 0.5 per cent lower, Kuala Lumpurretreated 1.9 per cent and Sydney drifted down 0.4 per cent. Jakarta fell 1.9 per cent and Seoul inched down.

Manila bucked the downtrend, posting its fourth consecutive rise after hitting its lowest level in almost seven years last week. ``There's not much negative news coming out. The foreign markets are relatively stable and so are the exchange and interest rates. Basically, the market is taking its cue from them,'' Oliver Plana of Asiasec Equities Inc. said. Foreigners are on a ``gradual accumulation mode,'' he added. Other analysts credited the massive buying in index heavyweight Philippine Long Distance Telephone Co. (PLDT) which rose 25.3 per cent or 205 pesos to close at 1,015 pesos.

Edward Teodoro of Securities 2000 Inc. said the market took heart from regulators' decision to defer a decision on PLDT's anti-takeover "poison pill" shareholder plan. The Philippine Stock Exchange composite index closed 92.7 points higher at 1,269.24. Tokyo: Japanese share prices dipped 2.4 per cent to a 12-yearclosing low as parliament struggled to forge a compromise on bills to rescue the troubled financial industry, brokers said. ``Buying sentiment has very much deteriorated with investors depressed by no sign of economic recovery and no progress in finanical reform Bill debate," said Junji Ota, an analyst at Okasan Research Institute.

The key Nikkei stock average of the Tokyo Stock Exchange dropped 338.56 points to finish at 13,859.14, the lowest since March 5, 1986, when it closed at 13,807.46.

"Worries of further drops haunt the market as the debate on the financial bills has become a tool for political power games," Tsuyoshi Segawa of New Japan Securiti es Co. said. "The fate of share prices will hang on whether politicians will get si gnals from markets."

Some bargain-hunting emerged when the Nikkei fell below 14,000 points, brokers said. Investors were shifting their focus to a meeting between US President Bill Clinton and Japanese Prime Minister Keizo Obuchi next Tuesday, a Mito Securities brokersaid.

Hong Kong: Hong Kong share prices fell 3.6 per cent on profit-taking as investors fretted that prospects of an early US interest rate-cut may be fading, dealers said. Ricky Tam, research head at Delta Asia Securities, said worries over the direction of global markets were also to blame for the fall, citing a sharp drop on the Tokyo Stock Exchange.

The key Hang Seng index snapped a four-day winning streak and lost 284.11 points to close at a week's low of 7,576.57. Dealers said remarks by US Federal Reserve chairman Alan Greenspan overnight under cut expectations that there would be any early interest rate cuts in the United States or other industrial countries.

Vanessa Yeung, analyst at GK Goh Securities, said it appeared unlikely that the US Federal Reserve would cut interest rates at its meeting at the end of this month."The United States has very low inflationary pressure but the economy is growing steadily. I think Greenspan would want to hold back any rate cut before October as the G7 memberscome together to discuss the global financial markets," Yeung said.

Singapore: Singapore's benchmark stock index closed barely lower as the short-covering which had pushed up prices earlier in the week subsided, dealers said.The Straits Times Index closed 5.33 points or half a per cent down at 941. 42. The broader All-Singapore index ended 3.64 points lower at 290.05.A dealer with a Japanese brokerage said positive news about impending rate cutsin the United States and other industrial countries will likely be neutralised next week when Singapore's national wage council meets.

Singapore banks have already been easing interest rates.

Kuala Lumpur: Malaysian share prices closed 1.9 per cent lower amid profit-taking in dull rangebound trade dominated by second-and third-liners.The Kuala Lumpur stock Exchange's 100-share weighted composite index ended at 386.55 points, down 7.49 points from Wednesday's close.