Share prices in Tokyo bounced back 2.1 per cent, Australian stocks climbed 1.5 per cent and the Taiwan market was up 1.4 per cent. Hong Kong, Singapore and Jakarta al so rose in a technical rebound.

But South Korean share prices fell 3.5 per cent on worries over an overnight fall on the New York Stock Exchange and rising money-market rates.

Malaysian stocks dipped 1.8 per cent on light foreign selling as capital curbs were eased to allow the tax-free repatriation of foreign portfolio funds. The markets in Bangkok, Manila, Shanghai and Bombay also fell.

In New York overnight, the Dow Jones Industrial Average fell 84.85 points to 10,829.28 after the release of statistics raising fears of a return of US inflation. Since its record on August 25, the Dow has lost close to 500 points or 4.55 per cent of its value so farthis year. In Tokyo, however, share prices rose as investors hunted for bargains following sharp drops in the previous session and covered short positions on selected export- led and high-tech issues.

The Nikkei average of 225 leading issues rose 365.92 points to finish at 17,802.48, reversing the previous day's 2.7-per cent, 482.41-point decline. The Topix index of all issues on the first section was also up 39.22 points at 1,496.24.

"It was a reaction to yesterday's decline," said Hiroichi Nishi, deputy head of the products group at Nikko Securities Co. Ltd. "Foreign investors bought on dips and domestic institutions also followed the mood."

Hong Kong: Hong Kong share prices rose 0.5 per cent Wednesday in futures-led trading, but worries over the outlook for Wall Street trimmed early gains, dealers said.

"The market weakened late in the session. Basically investors were worried about the weakness in the US markets," said Michael Ng, deputy managing director at Sassoon Securities.

He saidthe early strength on the market, which was up 1 per cent at mid-session, was due to stronger futures, which were consistently trading at a premium to the cash market. The key Hang Seng index gained 61.42 points to close at 13,544.19.

Singapore: Singapore share prices closed 0.2 per cent higher on a technical rebound, dealers said. The Straits Times Index rose 5.17 points to 2,122.34, while the broader All-Singapore Index gained 2.29 points to 574.84.

Dealers said investors were picking up selective stocks after recent losses and that sentiment was further lifted by the strong performance of the Tokyo market.

Kuala Lumpur: Malaysian share prices closed 1.8 per cent lower due to light foreign selling with capital controls eased to allow the tax-free repatriation of foreign portfolio funds.

"Volumes remained moderate, easing fears that the expiry of the one-year lock-in period for portfolio funds will lead to panic selling," an institutional dealer with a local brokerage said.

The KualaLumpur Stock Exchange composite index finished at 752.91 points, down 14.15 points from Monday's close. The bourse was closed Tuesday for National Day celebrations. The dealer said although selling gained intensity as European markets opened, it did not escalate into heavy selling as had been anticipated.

But the market tone remained cautious on concerns that there may be further and more intense selling Thursday, she said.

Seoul: Share prices on the Korea Stock Exchange fell 3.5 per cent amid heavy selling by foreign investors following Wall Street's decline overnight and higher money market rates, dealers said. The composite index closed down 32.36 points at 905.52.

Shinyoung Securities dealer Oh Min-Kee said institutional selling caused further losses in the afternoon session, pushing the index below the 920-point support level.

"Foreign investors off-loaded core blue chips and this provoked local institutions' profit-taking," he said. He said foreign selling appeared to reflect a negativereaction to the cancelled talks on the sale of Seoul Bank to HSBC Holdings, which had been viewed as a cornerstone of the country's overall restructuring programme.