South Korean stocks fell by 5.7 per cent and Thai shares by 4.1 per cent to their lowest point since 1998.

Investor confidence was shaken across Asia by the tumble in US stocks Friday, weighed down by profit-taking, after encouraging comments from Fed Chairman Alan Greenspan gave rise to gains a day earlier.

The Nasdaq composite lost 90.71 points or 2.17 per cent to 4,093.85 points, and the Dow Jones Industrial Average dropped 110.31 or 1.02 per cent to 10,733.56 points.

In Tokyo Monday, share prices slumped 1.6 per cent as concern deepened over Japan Inc.'s health following the collapse of retailer Sogo Co. Ltd. The key Nikkei-225 index lost 264.37 points to finish at 16,547.12. "Investors are losing motivation to buy," said Kazue Mayuzumi, senior market analyst at Nikko Securities.

"A depressing mood, originating from Sogo's collapse, has descended on the market." Both foreign investors and domestic brokers sold a range of shares on lingering fears aroused by department store chain Sogo's spectacular collapse on July 12. Seiyo Corp., a real estate developer and part of the giant Saison group, collapsed last Tuesday to become the latest victim of Japan's speculative "bubble economy" boom of the late 1980s.

Hong Kong: Share prices in Hong Kong closed 1.5 per cent lower following a decline on Wall Street last Friday and on profit taking in Li Ka-Shing's conglomerate Hutchison Whampoa.

The benchmark Hang Seng index lost 261.17 points to close at 17,659.69, from a high of 18,028.65. Dealers also said banking stocks continued to offer strong support to the index ahead of results announcements, while H-shares and red-chips extended their gains amid persistent rotational buying.

Singapore: Share prices in Singapore closed 1.3 per cent lower, following a fall on Wall Street Friday and in the absence of fresh local leads. "There is nothing new in the market that could ignite fresh buying interest," a dealer with a local brokerage said.

Dealers also added volumes thinned out ahead of the listing of rail operator Singapore MRT on Wednesday, which could siphon a lot of liquidity out of the market. The Straits Times Index fell 27.74 points to 2,098.96 and the broader All-Singapore Equities Index shed 5.79 points to 564.11.

Kuala Lumpur: Malaysian shares ended 1.0 per cent lower on selling of selected blue chips amid weak regional markets. The Kuala Lumpur Stock Exchange composite index closed down 8.19 points at 822.89. Dealers said foreign brokerages initiated the selling and overall sentiment was further weakened by falls in other regional markets stemming from Wall Street's Friday losses.

Seoul: South Korean share prices fell 5.7 per cent on heavy foreign and retail selling as investors lost confidence amid renewed concern over corporate credit shortages.

The Korea Stock Exchange index closed down 45.17 points at 737.89. Samsung Securities Oh Jae-Yul said the market appeared to have entered a downward phase with investors losing confidence. "The market advanced on the back of expectations ... as those expectations have not been met by support in terms of demand base and government commitments, disappointed investors seem now to be on a selling spree."

Bangkok: Thai share prices nosedived 4.1 per cent to their lowest point for almost three yearsas Thailand's bourse continued its record as Asia's weakest performer.

The Stock Exchange of Thailand (SET) composite index tumbled 12.53 points to close below the psychological barrier of 300 points at 293.05. The close was its lowest since October 1998, the height of the Asian Financial crisis.Jakarta: Indonesian share prices closed marginally lower on profit-taking in selected large cap stocks and regional market weakness. Declines in some large caps around midday wiped out early morning gains.

The Jakarta Stock Exchange composite index closed down 1.854 points, or 0.4 percent, at 506.940, off a high of 512.274 and a low of 505.999. Analysts said trading was focused on second-line and property stocks.

-- AGENCE FRANCE PRESSE