The key Nikkei-225 average closed down 143.07 points at 17,701.47. Latebuying by newly established investment trusts and institutional investorslimited an earlier decline which saw the index close the morning down 2.1per cent. But most high-technology and telecommunications issues remainedunder pressure after the tech-heavy Nasdaq composite in New York sank 2.3per cent on Tuesday.

Taiwan shares fell 1.9 per cent with the index at its lowest level this yearfollowing overnight declines on Wall Street and fears of a US interest raterise next week, dealers said. The key index lost 283.98 points to close at14,492.92 - its sixth consecutive loss. Concerns about an interest rate risecontinued to dampen sentiment, compounded by falls in the technology-ladenUS Nasdaq index, said Alex Tang, research director at Core Pacific-Yamaichi.Tang also blamed the weakness in the local market on lingering tensionacross the Taiwan Straits, adding "the consolidation is likely to continueuntil June. The market is closed on Thursday for a public holiday.

Singaporean market closed 1.5 per cent lower on bearish sentiment followingWall Street's fall overnight and concerns over a rise in US interest rates,dealers said. The benchmark Straits Times Index fell 32.26 points to2,057.22, while the broader All-Singapore Equities Index fell 9.53 points to540.84. "Sentiment is very weak. It's just that people don't want to stay inthe market ahead of next week's FOMC meeting," one dealer with a localbrokerage said, referring to the May 16 meeting of the US Federal OpenMarket Committee to set interest rates.

South Korean prices edged down in volatile trade ahead of the maturing ofMay options, dealers said. The composite index closed down 1.34 points at759.51, off a low of 753.73 and a high of 764.64. Trade was very thin.