Foreigners, or the promise of them, also directed play in Shanghai, where regulators' promises to allow foreign institutions into the market after China's WTO entry sent shares rocketing by 10 per cent.

In Tokyo shares prices fell 2.0 per cent as investors grew fearful the volatility of overseas markets might continue to depress local shares. The Tokyo Stock Exchange's Nikkei-225 index lost 307.72 points to close at the day's low of 14,840.47, sinking below the psychologically-important 15,000-point level for the first time since last Thursday. There were 895 losers and 363 gainers, with 154 stocks unchanged.

"The range was quite narrow but there was no sign of buying support," said Paul Migliorato, senior salesman in the international institutional sales department at Commerz Securities Japan. "People were concerned whether the present levels (of the index) could be sustained, given the volatility in overseas markets," the broker said. Investors saw no let-up in the Tokyo bourse's slide unless the US markets regain stability, another dealer noted.

Hong Kong: Share prices rose 0.9 per cent following gains in telecom stocks led by Pacific Century CyberWorks (PCCW). The key Hang Seng index closed up 135.21 points at 15,061.14 on turnover of 6.99 billion Hong Kong dollars (900 million US). Peter Lai, associate director of OCBC Securities, said the Hang Seng Index would remain directionless in the short term, because of a lack of fresh leads and shrinking market turnover.

"It was a dull market and the Hang Seng Index was moving in a narrow range," he said. Dealers said PCCW was boosted by its plan to reduce investment in its broadband Network of the World (NOW) service and other telecoms stocks also made modest gains.

Singapore: Shares closed 0.4 per cent higher in mixed trading with most investors sidelined on the eve of a public holiday. The Straits Times Index gained 6.59 points to 1,922.28, while the broader All-Singapore Equities Index gained 3.76 points to 511.41.

"The market was largely quiet with most investors sidelined ahead of tomorrow's holiday. Technology stocks fell in line with Nasdaq's weakness overnight," a dealer with a local brokerage said.

Kuala Lumpur: Malaysian shares ended 1.2 per cent higher on local institutional support for blue chips before Friday's budget. The Kuala Lumpur Stock Exchange composite index rose 9.73 points to finish at 796.22. The market is closed Thursday for a holiday. Volume was 235.37 million shares worth 658.60 million ringgit (173.3 million dollars). Losers led gainers 414 to 219.

"The market is basically Tenaga-led on some window dressing activities," said an institutional dealer at a local brokerage. Petronas Gas and Sime Darby were also among the blue chips supporting the composite index.

Seoul: South Korean share prices closed down 0.5 per cent on selling triggered by weak futures but were off their lows on selective foreign buying. The composite index closed down 2.72 points at 542.33. Volume stood at 306 million shares worth 1.8 trillion won (1.6 billion dollars).

The market opened sharply lower led by semiconductor stocks after Nasdaq's fall overnight, they said. However, Hyundai Securities analyst Chun Jino said the market might soon test the 550-point level amid expectations that oil prices and overseas stock markets would soon stabilise.

Manila: Philippine share prices closed 0.9 per cent higher on bargain hunting amid a dearth of market moving news. The Philippine Stock Exchange composite index put on 11.95 points to close at 1,294.37.

"It's still a continuation of the technical rebound of the last two days. We can'T kep going down forever and the market is technically oversold. But I don'T think anybody here sees this as a turning point," said Edward Lopez at Lopez, Locsin Co. "The market's up but very slightly," said Nina Carpio at Orion-Squire Capital Inc. She added she believes the rise would not be sustained amid a barrage of problems on the domestic Front, including high interest rates, a widening budget deficit and the bribery scandal involving President Joseph Estrada.

Taipei: Taiwan share prices closed up 1.8 per cent to breach the psychologically important 6,000 point level on continued buying of technology shares and government support. The Taiwan Stock Exchange weighted price index rose for the fifth consecutive session by 105.15 points to 6,023.78 on turnover of 107.96 billion Taiwan dollars (3.37 billion US).

"Strong buying of technology shares and active trading were clear indications that most investors' confidence has been restored," said Alex Chio, analyst at Dresdner RCM Global Investors Securities Investment Consulting Co. "Recent buying from foreign institutions and government funds has also lifted sentiment," he said.

Bangkok: Thai share prices fell 1.6 per cent Wednesday, with profit taking in energy and blue-chips eroding earlier gains, dealers said. An analyst with a foreign brokerage said heavy declines in energy were led by PTTEP.