While the key Tokyo bourse was closed for a public holiday, and the second largest regional market Hong Kong ended only modestly higher, the ongoing Muslim rebellion further dampened sentiment for Manila stocks and a weak currency hit the Taipei market.

Share prices in Hong Kong closed 0.3 per cent higher with selected blue chips and China plays underpinning support. The benchmark Hang Seng index gained 48.44 points to close at 17,758.51.

The local market held up well considering the profit-taking pressure on the Dow and Nasdaq overnight, said James So, director of research with Asia Financial Securities. So said he did not expect Federal Reserve Chairman Alan Greenspan to say anything market-moving when he addresses the US Congress later tonight.

Banks held up well with HSBC closing 50 cents higher to 98.50 dollars and Bank of East Asia gained 35 cents to $20.10. China plays were in focus, especially airlines and utilities.

Singapore: Singapore share prices closed 0.2 per cent weaker Thursday, getting little lift from positive trade figures that showed key exports rising in June and the first half of this year, dealers said. The Straits Times Index fell 3.96 points to 2,133.25 while the broader All Singapore Equities Index slipped 1.38 points to 573.61.

Stocks fell despite government figures which showed that Singapore's key non-oil domestic exports rose 10.5 per cent in June from a year ago to 9.4 billion Singapore dollars (5.4 billion US).

Non-oil domestic exports, a key barometer of the health of the trade driven economy, grew 11.6 per cent in the first-half of this year. Steady buying in a few blue chips, led by Singapore Press Holdings and Singapore Airlines, helped to avert a major fall, dealers said, while investors stayed to the sideline ahead of a speech by US Federal Reserve Board Chairman Alan Greenspan scheduled later Thursday.

Kuala Lumpur: Malaysian shares ended 0.7 per cent lower on foreign selling of selected blue chips and following a negative outlook on Malysian stocks from an international brokerage house.

The Kuala Lumpur Stock Exchnge composite index closed down 5.55 points at 835.30. "There is a little selling by foreigners," said an institutional dealer who works on the foreign desk.

"Sentiment is a bit weak," he said, adding that Morgan Stanley Dean Witter's move to reweight Malaysia to underweight from overweight, reported Wednesday, had also hurt sentiment.

A senior institutional dealer at another brokerage said the market held on well in the morning but declined on selling pressure at about 3:00 PM, about the time when the European markets opened for trade.

Seoul: South Korean share prices fell 2.31 per cent on foreign selling and the Nasdaq's fall overnight. The composite index closed down 18.40 points at 778.90, off a high of 791.41 and a low of 774.47.

The market lost momentum with investor confidence seriously damaged by the current delay in restructuring measures, they said. "Hopes of a liquid, strong market have failed to materialise as there is no fresh money coming into the market," Meritz Securities analyst Stephen Ryu said. He said the downward swing was expected to continue in the foreseeable future.

Bangkok: The Thai stock market dropped 2.1 per cent due to selling in large-cap stocks, in line with weak regional markets. The Stock Exchange of Thailand (SET) composite index plunged 6.69 points to finish at 307.85 points, while the SET 50 index was off 0.55 of a point at 21.73.

Jakarta: Indonesian share prices closed down 0.07 per cent as President Abdurrahman Wahid refused a parliament request to explain the firing of two ministers. The Jakarta Stock Exchange composite index closed down 0.385 points or 0.07 per cent at 513.393, off a low of 509.86 points.

They said later gains led by Telkom, after the President said he would answer other questions raised by MPs in writing, offset earlier losses which had followed Wahid's initial refusal to answer the legislators. A research head with a foreign brokerage said the market is treading very cautiously ahead of Wahid's expected submission of written answers tomorrow.