Tokyo: Asian share markets mostly made modest gains on Tuesday led by the key Tokyo and Hong Kong exchanges. Technology stocks were under pressure throughout the region following further losses on the Nasdaq in the US but bargain-hunting in other sectors helped push most key indexes higher.

The technology-heavy US Nasdaq index slid 2.8 per cent on Monday amid jitters over the outlook for Intel Corp and Apple Computer. Share prices in Tokyo crept up 0.1 per cent on late bargain-hunting by institutional investors. Investors discounted Bank of Japan's quarterly Tankan survey showing business confidence had improved, brokers said.

The Tokyo Stock Exchange's Nikkei-225 index added 9.58 points to close at 15,912.09. "Buying and selling were mixed in the morning but institutional investors started buying issues that are enjoying gains in both sales and profit," said Nikko Securities broker Hiroichi Nishi. In early trading, the Nikkei index declined on the back of a plunge in US technology shares, brokers said.

"The fall in the (US) Nasdaq market largely influenced share prices in Tokyo," said Masaru Kazama, head of the equity division at Nissan Securities Co. "Electronic and hi-tech shares declined." The release of the Tankan survey, which showed confidence among large manufacturers rising in September from June, failed to lift share prices in Tokyo, Kazama said.

Hong Kong: Share prices rose 0.5 per cent led by financial stocks on rumours that HSBC Holdings might be in talks to acquire Merrill Lynch, dealers said. The benchmark Hang Seng index gained 76.98 points to close at 15,725.96, off a high of 15,728.42, on turnover of 7.5 billion Hong Kong dollars (960 million US).

Peter Lai, Associate Director of OCBC Securities, said the Hang Seng Index was higher in quiet trade led by Financial stocks, with investors sidelined ahead of the long weekend. "Nothing happened in the market as we will have another public holiday on Friday (after Monday's holiday). The market was quiet, with thin turnover," he said.

Singapore: Shares closed 0.3 per cent higher on selective buying of blue chip stocks. The Straits Times Index gained 5.19 points to 1,978.14. Interest in banking and property stocks helped to negate losses in technology stocks which were hampered by overnight losses on Nasdaq, they said.

"Investors are playing a switching game between old economy and technology stocks," said a dealer with a local brokerage. "Uncertainties about crude oil prices, interest rates and the weakness on Nasdaq continue to drive the market sideways on a downward trend," he said.

Kuala Lumpur: Malaysian shares closed 0.7 per cent higher on bargain-hunting in selected stocks and with firmer regional markets boosting sentiment. The Kuala Lumpur Stock Exchange composite index ended up 4.59 points at 708.54. Loke Chee Kien, head of research at Sarawak Securities, said some short-term investors took the opportunity to buy some "battered value counters" after the market fell for eight consecutive trading days.

Manila: Philippine share prices closed 2.0 per cent lower on across-the-board selling of blue chips after a sharp fall in the local currency weighed on sentiment. The Philippine Stock Exchange composite index lost 29.64 points to 1,395.52. "We are the worst performer among Asian markets today.

Taipei: Taiwan share prices rebounded 2.0 per cent largely due to strong government support following losses for five consecutive sessions. The Taiwan Stock Exchange weighted price index rose 119.37 points to 6,143.44, following a 2.6-per cent decline in the previous session.

The state stabilisation fund was activated to shore up the bourse following recent sharp falls and margin call fears, said vice Finance minister Yen Ching-chang. The government was reported to have 446 billion Taiwan dollars (14 billion US) available for supporting the stock market.

Jakarta: Indonesian share prices closed down 1.1 per cent on profit-taking in blue chip stocks. The Jakarta Stock Exchange Composite Index closed down 4.528 points at 427.71. Some investors were consistently buying, although in low volumes, said an analyst at a state-owned brokerage. "This is a sign that some parties are accumulating stocks."