Hong Kong fell 3.7 per cent amid gloomy sentiment, led by selling in the futures market, Tokyo slipped 0.7 per cent, Singapore fell back 2.2 per cent and Kuala Lumpur dropped 1.9 per cent. Bangkok lost 1.9 per cent, Taipei retreated 1.2 per cent and Jakarta edged down 0.7 per cent. Dealers blamed profit-taking for the downtrend after a two-day rally sparked by Chinese reassurances that the yuan will not be devalued.

US share prices also closed down Wednesday due to profit-taking and futures-related program selling, with the Dow Jones Industrial Average closing down 124.35 points at 9,200.23. In Hong Kong, stocks fell below the key 9,500 support level amid gloomy sentiment and ahead of the expiry of the January futures contract. The bluechip Hang Seng Index was down 358.7 points at 9,360.96.

Dealers said weakness in overseasstocks overnight had contributed to the poor sentiment, although most of the drop was down to selling in the futures market. ``The big guys were net sellers in futures,'' said Anthony Mak of Vickers Ballas. ``The are selling down (February) futures to hedge cash positions in the expectation of poor earnings,'' he said. Tokyo: Share prices in Tokyo fell back 0.7 per cent as investors took profits after a three-day rally ran into heavy upside resistance, brokers said. After buying select international blue chips on the yen's fall against the dollar in early trading, investors also turned sellers on news of plunges in the Hong Kong and Taiwan stock markets, they added. ``Investors adjusted positions as they got tired of a top-heavy market despite arecent uptrend in futures,'' said Societe General Securities analyst Kiyoshi Kimura. ``They were also cautioned by a decline in Hong Kong stocks.

Singapore: Singapore share prices closed 2.2 per cent lower in the wake of Wall Street's fall overnight. ``Basicallythere are no fresh leads. Bankers are saying more rate cuts are unlikely and the upcoming results season is unlikely to spring any surprises,'' said a dealer with a listed brokerage.Kuala Lumpur: Malaysian share prices ended 1.6 per cent lower, as investors soldown key infrastructure stocks following government plans to defer new highways, dealers said. Depressed regional markets and a general absence of leads also led to the key stock index falling below the 600-point barrier, they added.