Seoul retreated 2 per cent, Kuala Lumpur lost 1.3 per cent and Sydney ended down 0.7 per cent as investors sold down share prices in reaction to an article Sunday in the official China Daily, dealers said.

The front-page article cryptically quoted `some analysts' as saying a devaluation or flotation of the currency `would not definitely be a bad thing and may not trigger a fresh round of currency devaluation that has been feared by most people.'

On Monday, however, China's central bank reaffirmed its resolve to maintain the stability of the yuan and distanceditself from the article. A People's Bank Of China (PBOC) spokesman said that the article ``is a private opinion that does not represent the opinion of the government and the central bank.'

In Hong Kong, stocks closed well off their lows as the statement soothed concerns over a possible devaluation of the Chinese currency that hit already fragile sentiment, dealers said.

``There was some last-minute buying back but essentially it was the same old story about a possible yuan devaluation, falls on Wall Street and worries about Brazil,'' Vickers Ballas sales director Anthony Mak said.

``Also the futures market is still trading at a 100-point discount to cash ahead of Friday's expiry, so that added to the selling pressure,'' he said. The headline Hang Seng share index closed down 239.02 points at 9,499.5. The index had closed noon down 4.2 per cent.

Tokyo: Share prices in Tokyo closed 0.4 per cent higher fuelled by bargain hunting and dismissing concerns across the rest of Asia over a devaluation ofChina's currency, brokers said. After slipping in the morning session, the key Nikkei index rose by nearly 100 points in the afternoon on selected buying of bluechips. ``Although shares were down in the morning session due to a fall on Wall Street, they recovered in the afternoon session thanks to the stabilising yen and growing expectation for economic recovery,'' said Nikko Securities senior market analyst Kazu E Mayuzumi. The key Nikkei 225 index finished up 54.41 points at 14,208.81, while the Topixindex of all first-section issues rose 1.42 points at 1,098.71.

Singapore: Singapore's benchmark stock index closed 5.5 per cent lower as regional markets recoiled from the spectre of a Chinese yuan devaluation.``If the yuan is devalued, that will put pressure on other currencies to be devalued as well to maintain their competitive edge,'' a local broker said.

``The regional economies are recovering. What we need is some stability, not a fresh bound of currency speculation,'' he added. The Straits TimesIndex ended 80.73 points lower at 398.02. The broader All-Singapore Index fell 19.28 points to 379.45.

Kuala Lumpur: Malaysian share prices ended 1.3 per cent lower in line with weak regional performances amid renewed concerns that the Chinese yuan may be devalued, dealers said. The Kuala Lumpur Stock Exchange's composite index finished at 610.19 points, down 8.35 points from Friday's close. One institutional dealer at a local brokerage said lingering concerns that the Chinese yuan may have to be eventually devalued affected sentiment on the bourse. ``And in line with the yuan devaluation rumours, regional markets were also down. However, prices were quite well supported. The 600-point barrier is holding up very well,'' she said.

Bangkok: Thai shares fell 3.5 per cent at the close as regional anxiety over a possible devaluation of China's yuan currency spooked investors, dealers said. Some investors were also waiting to see the direction of Wall Street this week, dealers said. The Stock Exchange ofThailand (SET) main index closed down 13.12 points at 363.36, while the select SET 50 shed 1.04 points to 26.51.

Jakarta: Indonesian share prices slumped, closing five per cent lower on concerns over a possible devaluation of the Chinese yuan and the devastating riots in eastern Indonesia, brokers said. ``The main reason for the rupiah's fall was the concerns of a yuan devaluation. The regional currencies were also lower,'' a foreign exchange dealer at an international bank said. The Jakarta Stock Exchange composite index closed down 19.924 points at 382.478.

Seoul: South Korean shares fell two per cent on heavy futures-led selling amid concerns over possible external shocks, dealers said. The Korea Stock Exchange index closed down 10.82 points at 539.76, off a low of 538.35.