Tokyo's benchmark Nikkei 225 stock index took heart from the soft yen, rising 1.83 per cent to close at 14,256.67. The index was also boosted by a positive reaction to announcements of major restructuring plans by companies such as electronics giant NEC Corp. But traders said the upside was limited due to companies locking in profits before the fiscal year ends on March 31.

Korea stocks closed down 2.62 percent at 508.49 on foreign-led selling in response to the yen's slide and early weakness in the index futures market, brokers said. A weaker yen makes Japanese products more competitive in dollar terms, but is viewed negatively in South Korea, whose exports compete with Japan's. "The market's movement isnow heavily dependent on the yen/dollar rate," said broker Hong Sung-keon of Hanyang Securities. The Dow Jones Industrial Index had risen 0.44 percent on Friday to 9,339.95, spurred by a rebound in technology stocks. Most Asian markets focused on domestic news and corporate announcements. Hong Kong's Hang Seng index wallowed in directionless trade, ending down 0.27 percent at 9,229.34, as traders waited for the results of HSBC Holdings plc and Hang Seng Bank Ltd to be released.

"I think today is all about what's happening after the close in results of HSBC and Hang Seng (Bank)," said Miles Remington, head of Asian sales trading at SG Securities. When the numbers came they showed HSBC's pre-tax profit dropped 19 percent in 1998 as it made huge provisions for Asian bad debts.

Hang Seng Bank said its net profit fell 27.5 percent. In Australia, the All Ordinaries Index ended off 0.27 percent to 2,916.3 due to selective profit-taking and sluggish stocks in the retail sector. Taiwan's strong new year rallycontinued on Monday, with the index rising 3.97 percent to 6,313.63 in response to the government's stimulus and liberalisation programme announced at the end of last week.

Singapore's Straits Times Index rose 1.88 percent to close at 1,400.18, boosted by institutional buying in MSCI component stocks, dealers said. The New Zealand the Top 40 Capital benchmark was up 1.18 percent to 2,261.39 as Telecom Corp prices tested new highs.

In Kuala Lumpur, the Composite index fell 0.47 percent to close at 562.61. Bangkok stocks dipped 0.97 percent to close at 333.30 and Jakarta was down 1.32 percent to close at 398.67.