Indonesian shares fell 0.7 per cent amid caution over the arrival of foreign peace keepers in troubled East Timor. Hong Kong stocks ended barely lower in the absence of fresh trading incentives and Singapore closed down 0.4 per cent after crucial non-oil domestic exports in August posted a lower-than-expected rise. Malaysian shares fell 0.5 per cent due to renewed concerns over political stability after an anti-government rally at the week-end. Profit-taking pulled Thai stocks down 0.9 per cent.

Australian stocks ended 0.3 per cent lower on concerns over the direction of US interest rates and the Taiwan market eased 0.6 per cent with investors sidelined ahead of the Moon festival.

South Korean shares, however, gained 0.9 per cent as investors cheered the conclusion of a deal to sell ailing Korea First Bank toa US investment firm, and Philippine stocks rose 1 per cent on selective buying.

In Hong Kong, share prices fell 0.1 per cent as investors took to the sidelines and waited for fresh trading incentives to emerge, dealers said. ``There is basically a lack of direction,'' said Michael Ng, deputy managing director at Sassoon Securities, adding the market stabilised after falling some 200 points at one point during the day's trading.

Tokyo: Share prices in Tokyo rallied 1.3 per cent as the yen eased against the dollar amid growing prospects that the Bank of Japan would loosen its monetary grip, brokers said. The Nikkei average of 225 selected issues on the Tokyo Stock Exchange rose 232.99 points to finish at 17,575.26.

``Investors were beginning to feel secure about foreign exchange,'' said Tsutomu Ono, head of investor information at Universal Securities Co Ltd. Brokers said the market had been primed by a string of Japanese press reports to expect a policy change when the central bank meets Tuesday.The Topix index of all issues on the exchange's first section was also up 18.01 points at 1,519.28.

The Bank of Japan has been pressured to ease monetary policy under a deal with Washington for joint intervention in the market to weaken the yen, which last week hit a three and a half year high against the dollar, reports said.

Kuala Lumpur: Malaysian share prices ended 0.5 per cent lower amid renewed concerns over political stability following a weekend anti-government rally, dealers said. The Kuala Lumur Stock Exchange composite index fell 3.65 points to finish at 710.03, but well off a sharp low of 697.12 points.

A dealer with a local brokerage said the Sunday clash between police and thousands of supporters of jailed ex-deputy premier Anwar Ibrahim contributed to earlier losses. But local institutional support was evident in late trade, he said. ``We believe local funds moved in to support the market, keep it above 700 points,'' he added.

Bangkok: Thai stocks slipped 0.9 per centafter profit taking offset early gains and some investors kept their powder dry ahead of an expected growth forecast upgrade, dealers said. Some investors hoping for a spectacular economic recovery were disappointed by the National Economic and Social Development Board figures showing second quarter growth of 3.5 per cent year-on-year.

There had earlier been speculation that leaked documents would show growth was up eight per cent in the quarter. The benchmark Stock Exchange of Thailand index closed down 3.95 points at 434.21, while the select SET 50 dropped 0.3 points at 30.33.

Somsak Boonsuphaporn of the United Securities said many investors were still concerned by the future level of the baht and rising oil prices which have sparked calls for tax cuts here. Some were also reluctant to commit themselves before the cabinet considers its eighth letter of intent (LOI) over its bailout with the International Monetary Fund Tuesday.

Jakarta: Indonesia share prices closed 0.7 per cent lower amidcaution over the landing of the peacekeeping force in East Timor and suspicions of a coverup in the B ank Bali scandal, dealers said.

An analyst with local brokerage Mitra Duta Securities said market sentiment was weak, forcing investors to the sidelines. He said the arrival of the peacekeeping force in East Timor early Monday did not guarantee peace in the territory.

``I think a lot of investors are cautious about the arrival of the peacekeeping force. There is no guarantee there will be no clash between the peace keepers and the militias,'' he said. The Jakarta Stock Exchange composite index closed 3.684 points lower at 543.333.