Regional markets ended mixed, Tokyo and Hong Kong retreated, with Singapore and Sydney advancing slightly. Malaysian share prices fell 2.5 per cent as detained former deputy premier Anwar Ibrahim was charged in court.

South Korean shares were the biggest gainers of the day, rising 2.2 per cent after the cancellation of a threatened bank strike. Bangkok and Taipei ended marginally lower and Jakarta and Manila barely higher.

Most bourses were expecting a cut of upto 50 basis points in US interest-rates to result from a meeting Tuesday of the policy-making Federal Open Market Committee. In Tokyo, Japanese share prices rallied from near 12-year lows despite fears of bankruptcies following the collapse of Japan Leasing Corp in the country's largest post-war corporate failure, brokers said. They eventually closed 0.6 per cent lower as activebuying from public funds in late trading prompted dealer-led position covering, brokers said.``There are mounting concerns that Japan's Financial woes will get worse,'' said Masaaki Higashida, a broker at Nomura Securities. A Yamatane Securities broker said public funds emerged as active buyers of international blue chips such as Sony, Honda and TDK in anticipation of cuts in US inter est rates.

But he added, ``Concerns over companies, in particular construction companies associated with Japan Leasing and suffering significant losses, weighed on sentiment.'' The Nikkei Stock Average of 225 leading issues on the Tokyo Stock Exchange fell87.94 points to finish at 13,821.43, reversing a 1.4-per cent, 185.53-point rise in the following session. Hong Kong: Hong Kong share prices dropped 1.4 per cent on profit-taking as investors were sidelined awaiting news of a US interest-rate cut ahead of a long holiday, dealers said. Dealers said trading was cautious ahead of the meeting of US Federal Open Market Committeeto decide a rate cut late Tuesday. Gilbert Chu, research head at Sun Hung Kai Securities, said the market had factored in a US interest rate cut of 25-50 basis points.

``The anticipated rate cut will come after the collapse of a US hedge fund and is likely to be aimed at keeping a lid on a potential crisis,'' he said. ``It is not the positive signal to the market (that a rate cut normally would be),'' said Chu, adding this was seen mainly as a move to prevent a crisis from emerging following the collapse of US hedge fund long-term Capital Management. The key Hang Seng index lost 108.43 points to close at 7,837.61, following the previous day's gains of 244.93 points. Singapore: Singapore share prices ended 0.9 per cent higher on some good buying amid expectations that interest rates will be slashed in the United States.

``Going by the volume, we think there must some buying programme from foreign investment houses,'' a dealer with a local stock brokerage said.

She said the market was banking on a cut ininterest rates by the US Federal OpeN Market Committee which meets Tuesday. ``With the long period of anticipation, the market actually has factored in this rate reduction,'' she said.

The benchmark Straits Times Index closed 7.98 points higher to end at 938. 51 while the broader All-Singapore index rose 1.77 points to 287.18. Kuala Lampur: Malaysian share prices ended 2.5 per cent lower, dragged down by news of deposed deputy premier Anwar Ibrahim's sex and corruption court case, dealers said. Anwar's first appearance in court with bruises on his arm and a swollen eye addeD To the overall uneasiness in the market, they said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index closed at 377.52 points, down 9.75 points from Friday's close. The bourse was closed Monday to celebrate the success of the Commonwealth Games here.An institutional dealer at a local brokerage said trading was dictated by developments in the courtroom where Anwar was charged with several counts of unnatural sex andcorruption.Trading was tense, with many expecting Anwar supporters to react negatively to his statement on the way he was treated while under detention, she said.``He appeared bruised ... this is not good at all. There is some speculation that there will be more skirmishes,'' she added.Bangkok: Thai stocks closed 0.1 per cent in the red on short-term speculation ahead of an expected cut in US interest rates, analysts said.Analysts said most investors were awaiting Tuesday night's decision of the US Federal Reserve on whether to cut interest rates, leaving the market open to profit taking after recent rises.``The market is in a consolidating peroid after its gains last week,'' Adkinson Securities analyst Veerachai Krongsamsri said.``If the (Federal Resreve) agrees to only a 0.25 percentage cut in rates, the market will have already factored that in. But if it's more than that it will be very positive for the market.''

The Stock Exchange of Thailand (SET) broad-based index fell 0.18 points to 255.35 points,while the select SET 50 index was down 0.1 points to close the day at 17. 91.