Tokyo stocks tumbled 2.3 per cent on doubts over how effective the reforms would be, Singapore dipped 0.1 per cent, Kuala Lumpur ended 1.1 per cent lower and Sydney fell 0.5 per cent. Seoul fell 1.7 per cent and Bangkok lost 0.2 per cent. Hong Kong, Manila and Jakarta posted gains.

Regional bourses had staged a strong rally Monday, boosted by a firmer yen, Tokyo's moves to reform banks and hopes of interest-rate cuts. The focus moved Tuesday from regional issues to domestic ones. Tokyo stocks were hit Tuesday by lingering skepticism over the effectiveness of the series of key bank reforms now passing through parliament, brokers said.

Investors also took profits after the previous day'ssharp 5.2-per cent rally, which had been driven by the enactment of reform bills aimed at helping failing banks with injections of taxpayers' money, brokers said.

The lower house on Tuesday passed another bill, which will prop up weak but solvent banks with public funds in a $510 billion bailout package.

``It is still not clear how effectively banks will use the public funds,'' a Universal Securities Co Ltd dealer said. ``Investors do not think that the credit crunch will be resolved as a result,'' he added. The Nikkei 225 index fell 312.22 points to close at 13,242.79, reversing the previous day's 675.04-point rebound from its near-13 year low.

The broader Topix index of all issues on the first section of the Tokyo Stock Exchange was also down 24.36 points at 998.98.

Hong Kong: Hong Kong share prices reversed early losses and rose 0.2 per cent on late selective buying that propelled the market barometer to its highest level in early five months, dealers said.

The Hang Seng index gained 18.56points to close at 9,008.83 in fifth straight winning session. The index last closed above 9,000 points on May 26, when it reached 9,482.21. ``There were some buying orders in the last minutes before trading closed as the yen remains firm,'' said Sean Li, associate director at Amsteel Securities.

Singapore: Singapore share prices ended 0.1 per cent lower as investors locked in profits after several days of gains, amid weaker regional bourses, dealers said. The dealing director of a listed brokerage said he had expected a more severe pullback after the run-up in the past few days but the `resilience of the market is fairly impressive.'

The Straits Times index dipped 0.96 of a point to end at 1,015.64 but off a lowof 1,004.97. The broader All-Singapore index ended down 0.54 of a point at 302.01.

Kuala Lumpur: Malaysian share prices fell 1.1 per cent as investors locked in profits on gains posted the day before. An institutional dealer at a local brokerage said the focus was on debt-riddeninfrastructure giant Renong Bhd and its subsidiary United Engineers Malaysia.

The two issues resumed trade Tuesday after being suspended since last Friday when $2.76 billion bond-issue plan and a restructuring deal were announced for Renong.

``The response to the restructuring deal has been good and both stocks were the most active,'' said the institutional dealer.

The Kuala Lumpur Stock Exchange composite index fell 4.46 points to 385.04, while the lesser second board index fell 4.33 points or 4.3 per cent to 97.02. Renong rose 22 sen to 1.17 ringgit, while United Engineers rose by nine sen to 2.21 ringgit.

Bangkok: Thai share prices fell 0.2 per cent in mixed trade, with banks and finance firms generally lower, analysts said. Dealers said that although there was buying in the late afternoon, gains were offset by profit-taking earlier in the day.

``I think both foreign and local investors sold shares across the board after consecutive days of heavy buying,'' one local analyst said. The StockExchange of Thailand (SET) composite index dropped 0.61 points to 290.19, while the SET 50 selected index finished 0.09 points weaker at 20. 73.

Jakarta: Indonesian shares closed 2.1 per cent higher on gains led by state telephone monopoly Telkom and satellite operator Indosat, dealers said.

A dealer at a joint venture brokerage said he believed certain brokerages close to the government were involved in the Telkom and Indosat buying. ``It is a little bit hard for me to understand whether it was genuine buying or They were just pushing up the shares,'' he said. The Jakarta Stock Exchange composite index was up 6.569 points at 313.986. Turnover totalled 313.986 million shares worth 235.593 billion rupiah (25.9 million dollars).

Seoul: Share prices on the Korea Stock Exchange closed 1.7 per cent down amid heavy profit taking. The index fell 6.09 points at 346.08, off a low of 344.91 and a high of 358.31, with steadier interest rates and the weaker yen leading to profit taking.