Local factors predominated in other markets, with Tokyo down 1.1 per cent as the rising yen spelt bad news for export-oriented counters. Singapore closed up 1.2 per cent on buying in bank shares, with the broader market directionless.

Kuala Lumpur shares closed 0.9 per cent down, largely ignoring Wednesday's strong GDP figure and focusing on the possibility of a capital outflow when a one-year lock-in period for foreign holders of stocks expires next Wednesday.

Share prices closed 1.1 per cent lower on late selling sparked by the yen's gain against the dollar, brokers said. ``Selling gained momentum as the yen rose into the range of 110 yen,'' said Hiroichi Nishi, manager of Nikko Securities CoLtd's equity group. The Nikkei 225 index on the Tokyo Stock Exchange lost 188.87 points to end at the day's low of 17,666.29. Share prices rose nearly 1 per cent Thursday following an overnight record high on Wall Street, dealers said. The key Hang Seng index gained 129.25 points, or 0.96 per cent, to close at 13,608.38.

``The gains are made on the record gains on Wall Street,'' said Sean Li, associate director at Amsteel Securities. But he said trade was cautious because investors were still waiting to see whether there would be an interest rate rise in Hong Kong following the US rise on Tuesday.