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Asian market highlights:

TOKYO: Stocks ended down on Monday but off earlier lows

as a result of buying on the dips and arbitrage-linked buying,

brokers said.

Weak financial strength ratings on Japanese banks by

Moody's Investor Service had been discounted and had only

limited impact on bank shares or overall prices, they said.

"Falls in stock indices are nothing to do with the

ratings, but with index-linked selling by corporations and

less active foreign buying," said Isao Maruta, managing

director of Universal Securities.

The Nikkei average ended 161.44 points or 0.90 percent

lower at 17,871.05 after recovering from lows of 17,722.55.

HONG KONG: Hong Kong stocks erased sharp early losses to

close just above the 8,900 level in a session mainly dictated

by index futures movements, brokers said.

The blue-chip Hang Seng Index gained 4.66 points to close

at 8,900.48, against the day's low of 8,774.97. Turnover edged

up to HK$2.84 billion (US$367.4 million) from Friday's

adjusted HK$2.73 billion (US$353.17 million).

"I heard it was mainly day traders trying to break the key

8,800 support level but there was no follow-through selling

below that point and short covering emerged to push both the

spot and futures market back up," said Boby Ho, a dealing

manager at G.K. Goh Securities.

BANGKOK: Thai stocks continued in the doldrums, ending

the day lower in wafer-thin trade as both local and foreign

investors sat on the sidelines as tight liquidity added to the

bearish mood, brokers said.

The SET index ended 5.11 points lower at 1,315.8 on meagre

turnover of just 1.99 billion baht (US$79.6 million), the

lowest volume since April 17 when total trade was 1.79 billion

baht (US$71.6 million).

"The high interbank rate today compounded the already-bad

market sentiment," said one broker at a local house.

The interbank rate rose to a three-month high of

11.50-12.00 percent on tight money ahead of central bank

reserve requirments.

BOMBAY: Shares on the Bombay Stock Exchange (BSE) ended

higher and traders said activity was concentrated in blue

chips.

They said purchases by foreign investors and buying by

local operators to square off positions in end-account trade

pushed the index higher.

Tuesday is the last day of the account on the National

Stock Exchange (NSE) and in A-group stocks on BSE.

BSE's 30-share index rose 11.02 points to finish at a

provisional 3,457.20 points. The composite National index

gained 5.90 points to a provisional close of 1,584.68.

COLOMBO: Sri Lanka stocks closed flat on high volumes

supported by second session foreign buying of blue chips,

brokers said.

The Colombo Stock Exchange all share index closed 0.06

points lower at 748.26.

"We had these foreign buy orders for a while, but were

able to find lines only in the second session," said Dirk

Tissera of Asia Securities.

Finding buyers for good scrips was rarely a problem,

provided quantity could be sourced, traders said. "For

instance, we had the sellers in the morning. Therefore it was

easy to find buyers in the second session," said Shanaka

Jayasekera of John Keells Stock Brokers.

JAKARTA: Jakarta shares prices ended the day below the

psychological 500-point resistance level after heavy

foreign-triggered selling mostly in big-capped issues, brokers

said.

The Jakarta composite index fell 2.62 points to close at

498.03.

"Foreign-triggered selling was seen mostly in big issues,

pushing prices lower in the early session but bargain hunting

in the late session was seen erasing some of the losses," one

broker said.

KUALA LUMPUR: Share prices closed mostly lower but gains

in Malayan Banking (Maybank) helped to limit the fall in the

key market index, brokers said.

Maybank rose 40 cents to 20.60 ringgit on expectations of

strong full-year earnings which were later confirmed.

The benchmark Kuala Lumpur Stock Exchange's Composite

Index ended down 5.48 points at 1,022.85.

MANILA: Philippine shares ended lower as profit taking in

late session wiped out early gains, brokers said.

"Uneasy hands exited at the close after making modest

gains at the open," said Louie Bate of Baring Securities.

The composite index was down 12.93 points at 2,827.48 with

6.5 billion shares worth 1.27 billion pesos (US$49.61 million)

changing hands.

SEOUL: Stocks closed in positive territory for the third

consecutive trading day after drifting lower in the late

afternoon.

Brokers said that they expect the index to continue to

move gradually upwards as investor sentiment improves.

Trading was active, with 44.4 million shares changing

hands. The index closed up 1.41 points, or 0.15 percent, at

913.29. Advancing issues outpaced decliners by about five to

three.

"The market will continue to climb to around the 930 point

level, but may experience some selling pressure around there,"

said a Hanyang Securities broker.

SINGAPORE: Singapore shares ended little changed after

losing most of their early, currency-inspired gains, dealers

said.

"Prices rose in the morning with healthy moves in

properties after DBS Land's results but then there was a lot

of selling on profit-taking," said one dealer.

He said the 30-share Straits Times Industrial Index (STII)

seemed to get support everytime it went under 2,100 points but

few dealers had the confidence to buy above the 2,110 mark.

The STII closed at 2,106.38, up just two points, on trade

of 188.61 million lots worth Singapore $353.14 million

(US$254.06 million).

SYDNEY: The Australian share market closed firmer led by

the futures market after the offshore selling of recent days

abated and buying interest returned to the market.

The All Ordinaries index closed 6.3 points higher at

2,108.30.

The September share price index contract was up 13 points

at 2137 points, a 28.7 point premium to the physical market.

Traders said that having finished the morning session

higher after selling from offshore dried up, a resilient

futures market this afternoon ensured the first positive close

for four trading days.

TAIPEI: Taiwan stocks ended slightly higher with minor

buying in financial shares but general sentiment was cautious

before the ruling Nationalist Party's two-day national

congress starting tomorrow.

The weighted index advanced 30.57 points or 0.64 percent

to end at 4,773.38. Turnover was a small T$18.5 billion

(US$673.95 million).

The congress will decide on a party nominee for Taiwan's

first presidential elections next March and President Lee

Teng-hui is widely expected to become that nominee. "There

should be a celebration rally aftrewards no matter who is

nominated," said Michael Hung of Nikko Securities.

WELLINGTON: New Zealand shares ended steady on reasonable

turnover for a Monday, the main feature being continued

selling in Fletcher Challenge.

The NZSE-40 Capital Index ended 1.35 points down at

2,097.36 on turnover worth NZ$37.6 million (US$25.19 million).

Unfinished business in Fletcher Challenge on Friday

resulted in some more selling today, the stock ending five

cents down at NZ$4.33. FCL also topped the turnover list with

2.78 million shares selling for NZ$12.02 million (US$8.05

million).