A big drop on Wall Street dampened sentiment in Asia. The Dow Jones Industrial Average slumped 265.52 points, or 2.48 per cent, to 10,449.30 on Friday - its lowest close in a month.

The US Nasdaq however showed a modest 0.39-per cent gain on Friday to 3,860.56 points, offering some support to Asian technology stocks on Monday.Oil prices continued to retreat ahead of this week's OPEC meeting in Vienna, when the cartel is expected to announce a rise in production. NYMEX July crude was down 42 cents at $31.91 per barrel at 0520 GMT, extending the one dollar losses on Friday.

Most other markets decline
The Wall Street blue chip fall combined with bearish sentiment for property stocks in Hong Kong left the Hang Seng Index off 0.65 per cent at 16,327.89 at 0500 GMT.

Stocks of property developers had firmed on Friday in anticipation that the government would scale back subsidised housing sales to encourageprivate housing sales.

The move was announced after the Hong Kong market closed on Friday, prompting some profit taking when the market reopened on Monday.

Sun Hung Kai Properties lost 3.56 per cent to HK$61 after gaining seven percent in value on Friday.

In Australia, the main S&P/ASX 200 index reversed early losses to stand 0.15 per cent firmer at 0520 GMT at 3,145.5, partly helped by gains in heavyweight News Corp, which rose 67 cents to 23.05.

The company confirmed it might spin off its global satellite television operations as early as this week.

Singapore's Straits Times Index was down 0.24 per cent at 0500 GMT at 2007.38, in quiet trading.

Some loss of faith in banking stocks weighed on the Composite SET index in Thailand, pushing it down 0.80 per cent to 341.75 points by 0525 GMT.Korean stocks were firmer by midday, supported by active buying of futures contracts by foreign players. The Korea Composite Stock Price Index was up 1.23 per cent at 768.38 at 0525 GMT, while the tech-drivenKosdaq was up 0.39 per cent.

-- Reuters