``Investors have high expectations of greater demand from large-scale investment trusts to be set up toward the end of the week,'' said Tsuyoshi Segawa, head of equity dealing at New Japan Securities. Brokers said investors had spread their buying interest wider from high-technology and telecommunications issues, which are expected to attract most interest from new investment trusts. Share prices were weak in the morning, pressured by falls on Wall Street at the end of the previous week. But Segawa said: ``There has been a tendency in Tokyo share prices since the middle of the previous week to become independent from moves on Wall Street.''But investors were still concerned about US share prices as Federal Reserve policymakers prepare to convene for a two-day meeting from Tuesday, brokers said. They were reluctant to take fresh positions as the market was divided on the size of an expected interest rate hike - between 25 and 50 basis points, brokers said.

Hong Kong: Hong Kong share prices plunged 4.0 per cent to below the 16,000-mark due to worries over expected US interest rate hikes, dealers said. "The market fell on the back of the weaker Wall Street," said Howard Gorges, vice President of South China Brokerage. "We're seeing some high-flying stocks suffered the most on profit-taking following last week's sharp rise. "Investors are apprehensive, not knowing how Wall Street will perform tonight." The key Hang Seng index lost 653.60 points to close at 15,532.34, after gaining 7.1 per cent in the previous week's trade.

The index opened 2.7 per cent lower after the Dow Jones Industrial Average closed 289.15 points, or 2.62 per cent, down at 10,738.87 on Friday as fears of an interest rate hike at the upcoming Federal Reserve meeting intensified with the release of new US inflation figures, dealers said. Hong Kong, due to the official linkage of its currency with US dollar, follows the direction of US rates.

Sydney: Australian shares closed a modest 0.1 per cent higher after strong demand for market high-flier News Corp. countered the negative impact of a slump on Wall Street, brokers said. Hudson Securities adviser Graham Harcourt said besides the gains in News Corp., "the rest of the market was in line with the United States." The benchmark all ordinaries index ended the day at its highest point, 3.9 points up at 3,096.0. The all ords had traded in negative territory for most of the day after a sharp decline in New York overnight on Friday, where fresh inflation news sparked a sell-off among investors.

Brokers said interest rate jitters had influenced the domestic market, particularly among rate sensitive stocks such as banks, ahead of Wednesday's meeting of the Reserve Bank of Australia, which is expected to hike rates by another 25 points. But News Corp hit an all-time high of 18.90 dollars before closing 1.45 dollars or 8.5 per cent higher at 18.45 dollars, with 14 million shares changing hands. Brokers said the stock was spurred by expectations of further asset spin-offs and a price upgrade by investment house Merrill Lynch valuing the shares at 23.00 dollars within 12 months.

SINGAPORE: Singapore share prices closed 2.4 per cent lower amid increasing market worries over expected US interest rate increases, dealers said. The benchmark Straits Times Index fell 54.63 points to 2,230.28.

Dealers said the market was broadly affected by huge losses on all Street last Friday amid fears over the possibility of a higher-than-expected increase in US interest rates. "Investors are worried that the FOMC may raise US interest rates by at least 50 basis points given that the US economy has shown a more robust growth than what was expected," a dealer with a European brokerage here said, referring to the Federal Open Market Committee which decides on US interest rates.

KUALA LUMPUR: Malaysian shares closed lower with volumes on the decline after Wall Street's fall Friday and before two public holidays this week, dealers said. The Kuala Lumpur Stock Exchange composite index closed down 13.47 points or 1.44 per cent at 922.10. The exchange will be closed Tuesday and Friday. Falls on Wall Street and fresh fears of a rate rise in the United States hurt sentiment and led to widespread selling, a dealer with a local brokerage said. Corresponding falls on regional bourses added to the situation, he said. "Selling was heavier in the afternoon session as Europe opened," he said, adding that key blue chips were among the worst affected. Mixed markets as Asia braces for US rate hike.