The Tokyo Stock Exchange's Nikkei-225 index declined 34.61 points to close at 14,837.78. "Investors became bearish towards the end of trading as they decided to change their stocks to cash ahead of a three-day weekend," said Sakura Friend Securities Koichi Kawata.

Tokyo financial markets will be closed on Friday for a national holiday. "Although market sentiment was not so bad, sensitive moves are likely to continue for the time being," said Kawata. "Investors will keep an eye on moves on Wall Street."

Trading was moderate with volume estimated at 590 million shares, compared to 542.8 million on Wednesday. The Nikkei ended the morning higher on hopes that US stocks have bottomed out, dealers said. The tech-heavy Nasdaq index dropped 36.24 points to 3,333.39 on Wednesday, while the Dow Jones industrials lost 71.67 points to 10,899.4. Sentiment was also supported in Tokyo on speculation that New York shares will not fall much further ahead of next week's US presidential election.

Hong Kong: Hong Kong share prices fell 0.4 per cent on profit-taking although underlying sentiment remained positive. The key Hang Seng index lost 57.47 points to close at 15,291.54, from a high of 15,524.03.

Louis Wong, an analyst with Philip Securities, said the morning session did not track the fall on Wall Street, but profit-taking dragged down the Hang Seng Index in afternoon trade. "Underlying sentiment is positive and the Hang Seng Index just dropped slightly today. Profit-taking was inevitable, after yesterday's hefty gains," he said. He said there was profit-taking in technology stocks because technical rises for the past two days were not supported by fundamental improvements.

Singapore: Singapore share prices closed fractionally higher after a weak finish on Wall Street overnight. The Straits Times Index gained 0.42 points to 2,040.43. Electronic shares generally closed substantially higher, riding on a crest of optimism after the world's largest contract manufacturer Solectron made an offer to pay a premium 2.4 billion US dollars for NatSteel Electronics, the dealers said.

Investors were chasing electronic stocks on speculation of a string of buy offers for local companies, although "there is not enough evidence to support all this speculative buying," said a dealer at a Japanese brokerage.

Kuala Lumpur: Malaysian shares closed 1.1 per cent lower on extended selling amid weak sentiment. The Kuala Lumpur Stock Exchange composite index ended down 8.69 points at 749.43. Volume was 146.838 million shares worth 319.552 million ringgit (84.1 million dollars).

"Foreign and local investors are selling index-linked counters. Heavyweights like Maybank, Tenaga and Telekom are down," said a senior dealer at a bank-backed brokerage. "There are more sellers than buyers in the market."

Dealers said losses were exaggeraed in a thin market. "The market is very quiet ... there is little interest even from retail clients," one dealer said.

Malaysia Airlines bucked the trend to close higher following Transport Minister Ling Liong Sik's reported remarks on the appointment of a foreign chief executive and a new chairman.

Seoul: South Korean share prices closed 1.7 per cent higher in heavy trade on hopes of renewed corporate restructuring. The composite index closed up 9.34 points at 558.10 off a high of 563.98, dealers said. Volume was 458.8 million shares worth 2.6 trillion won (2.3 billion dollars).

Reports the ailing construction unit of the Hyundai Group would present new plans to raise fresh capital and would be spared when creditor banks announce a list of insolvent businesses to face shutdowns boosted sentiment.

"Whether Hyundai Engineeing is placed under court receivership or it manages to be excluded from the closure list ... the key is how quickly the Hyundai problem gets resolved," Good Morning Securities analyst Hong Sung-Tae said.

"Given that the economy is slowing, the index is not likely to see a steep rally," he said, adding any gains would likely be short-lived with resistance seen at 600 points.

Hyundai Engineering and Construction closed limit-up 175 won at 1,350 won.Manila: Financial markets in the Philippines are closed on Wednesday and Thursday for public holidays. They will reopen on Friday. Taipei: Taiwanese share prices closed 3.7 per cent higher on an easing of political uncertainty after reports the opposition may fail to impeach President Chen Shui-bian. The Taiwan Stock Exchange weighted price index rose 201.06 points to 5,626.08, on turnover of 79.76 billion Taiwan dollars (2.46 billion US), following a plunge of more than 500 points in the five previous sessions.

"Today's rebound has nothing to do with the fundamentals," said Cooper Leow of Jin Sun Securities Investment Consulting Co. "The rise purely reflects the easing of the domestic political tensions." Newspapers here reported the opposition Kuomintang (KMT), who initiated the impeachment move on Chen, may fail to collect the required backing from its parliamentarians.

Bangkok: Thai share prices gained 0.2 per cent, with attention focused on the newly listed Ratchaburi Electricity Generating Holding Plc. The Stock Exchange of Thailand (SET) composite index was up 0.53 points to finish at 280.30 points.

Jakarta: Indonesian share prices closed 0.3 per cent lowe/r led by selected blue chips amid a lack of incentives.

AFP