The Tokyo Stock Exchange's Nikkei-225 index closed down 52.40 points at 16,399.87. The market was nervous ahead of Friday's special quotation (SQ) to fix the price of September futures and options contracts, said Nomura Securities investment information head Muneyuki Ichihara.

"Many investors are feeling anxious about the SQ, which will be the first since the Bank of Japan lifted its zero interest rate policy last month," he said.

Hong Kong: Hong Kong shares closed barely changed, with profit-taking paring some of the gains seen in the morning session, dealers said. The key Hang Seng index gained 10.01 points, or 0.06 percent, to close at 17,605.23, off a high of 17,735.10, on turnover of 8.30 billion Hong Kong dollars (1.1 billion US).

Dealers said trade was directionless because of the lack of fresh leads and low turnover. Peter Lai, director of OCBC Securities, said the Hang Seng Index was in range trading because of the lack of fresh leads. He said the Hang Seng Index will remain rangebound between 17,200 and 17,800 in the short term. Singapore: Singapore stocks closed 0.7 per cent weaker in dull trade, dealers said. The Straits Times Index (STI) closed 14.51 points down at 2,163.39, and the All-Singapore Equities Index fell 1.68 points to 572.78. Trading interest was lacklustre in the absence of fresh leads, dealers said. "The market is very lethargic.

Turnover is so low. There are no themes or leads at this moment," said a dealer at a local brokerage. Losing issues led risers 171 to 114 and 280 shares were flat.

Kuala Lumpur: Malaysian shares closed 0.3 percent lower amid selling pressure following Tuesday's technical rebound, dealers said. The Kuala Lumpur Stock Exchange composite index ended down 2.03 points at 749.55, off a low of 735.86. A dealer with a local brokerage said investors took advantage of the rebound to lock in quick gains or reduce their losses.

"It was a short-lived rebound. Some of (the selling) was due to profit-taking but there's also quite a number of investors who were cutting their losses at a higher level," he said.

Seoul: South Korean share prices fell 0.4 per cent as continued foreign selling offset early gains led by institutional buying, dealers said. The Korea Stock Exchange index closed down 2.55 points at 676.69. Volume was 206.4 million shares worth 1.5 trillion won (1.36 billion dollars).

"Further losses are unlikely as the index fell below 670 points yesterday, triggering some bargain-hunting, especially in Samsung Electronics," SK Securities' Kim Dae-JHung said.

Mamila: Philippine shares closed 1.0 per cent ower, weighed down by a weakening peso, analysts said. The Philippine Stock Exchange composite index fell 14.96 points to close at 1,527.80. Taipei: Taiwan share prices closed 2.2 per cent lower on Wall Street's overnight fall and institutional selling, dealers said. The Taiwan Stock Exchange weighted price index fell 174.84 points to 7,610.78 on turnover of 87.27 billion Taiwan dollars (2.81 billion US).

Bangkok: Thai shares fell 1.9 per cent in broad-based selling, amid weakening sentiment due to rising international oil prices and a volatile local currency, dealers said. The Stock Exchange of Thailand (SET) composite index was off 5.74 points to finish at 302.51, and the SET 50 index shed 0.45 points to 21.17.

Some investors sold after the market failed to hold above the key resistance level of 305 points, said Capital Nomura Securities analyst Sukij Udomsirikul.

Jakarta: Indonesian shares closed 0.6 per cent weaker, led by profit-taking in selected large caps, with investors largely sidelined amid a lack of fresh leads, dealers said. The Jakarta Stock Exchange composite index closed up 2.876 points at 475.546 with 509 million shares worth 333.1 billion rupiah (39.8 million dollars) changing hands.

"People are tempted to get out with any profit they can make," a dealer at a local brokerage said, adding that some large caps were hit by profit-taking after their recent gains.