The losses were led by South Korea where heavy selling of semiconductor shares led a 6.7 per cent sell-off in the key index to its lowest level this year. Share prices in Tokyo fell back 1.1 per cent as investors took profits on hi-tech and other issues amid concerns over the Middle East situation and earnings by major US firms. The Tokyo Stock Exchange's Nikkei-225 index lost 172.10 points to close at 15,340.22, reversing a 182.01-point rally the previous day. "Although the index opened modestly higher, it soon started falling due to profit-taking," said Hiroichi Nishi, senior market anlayst at Nikko Securities. He added that Monday's 0.8 per cent fall in the technology-heavy Nasdaq index had "discouraged investors from buying up shares." Nippon Global Securities analyst, Hiroyuki Nakai, said the market still lacked buying momentum although it had rallied the previous day due to technical short-covering following Friday's advance on Wall Street.

Hong Kong: Share prices fell 0.7 per cent on concerns over high oil prices and US corporate earnings. The key Hang Seng index lost 99.97 points to close at 14,873.43 on turnover of 7.67 billion Hong Kong dollars (984 million US).

Dealers said the market was dragged down mainly by sharp falls in Pacific Century CyberWorks (PCCW) due to speculation about a rights issue and rumours that shareholder Cable and Wireless has been lending PCCW shares to hedge funds for short selling. However, PCCW declined to comment on the short selling rumour and said it had no current plans for a rights issue. Peter Lai, director of OCBC Securities, said investors also remained focused on the political climate in the Middle East.

Singapore: Shares dived 3.4 per cent led by losses in technology-related stocks following Nasdaq's weak closing overnight. The Straits Times Index closed down 64.92 points to 1,818.45. The release of key September data that showed non-oil domestic exports grew 11.7 per cent year-on-year, down from 27.3 percent growth in August, also dampened sentiment, dealers said.

Economists had expected a 17.90-21.50 per cent year-on-year rise in September non-oil exports.

Kuala Lumpur: Malaysian share prices ended 0.1 per cent lower with profit-taking ending three days of rises. The Kuala Lumpur Stock Exchange composite index fell 0.98 points to finish at 765.20, off a high of 775.86.

An institutional dealer with a local brokerage said short-term investors took advantage of recent heavy gains to take quick profits. He said the KLSE's rise over the last four days has been supported by syndicates buying for short-term gains, alongside local institutional and retail investors, and the market was now overbought.

Seoul: South Korean share prices plunged 6.7 per cent to a low for this year as semiconductor firms faced heavy selling pressure after the Nasdaq closed lower in the US. The Korea Stock Exchange index closed down 37.25 points at 512.8. Volume was 311 million shares worth 1.8 trillion won (1.6 billion dollars).

The losses in the two main semiconductor play reflected the downturn in their US peers as retail investors sold shares amid persistent concerns about the industry outlook. The market could now test 500 points after closing at its lows for the year, dealers said.

Manila: Philippine share prices fell 1.8 per cent on fears that interest rates would be further raised to bolster the depreciating local currency. The Philippine Stock Exchange composite index fell 23.27 points to 1,271.75.

"More than anything else it's the higher interest rates," said Jose Vistan of Wise Securities, warning that the Central Bank of the Philippines would likely raise interest rates to defend the local currency after it hit a record low of 49 to the dollar on Monday. "There's this threat by the Monetary Board to come up with a high-yielding instrument that would stem the peso depreciation, which will definitely siphon off speculation in the peso, but also from other investment instruments," said Enrique Santa Ana of Vickers Ballas Securities Philippines.

Taipei: Taiwan share prices closed 1.3 per cent higher on strong government buying. The Taiwan Stock Exchange weighted price index rose 71.41 points to 5,702.36, following a 4.2-per cent plunge in the previous session.

"The government stabilisation fund was active in supporting the bourse," said Chou Hsin-lin, analyst with Yuanta Capital Management Co. "It spent a lot of money to buy stocks but the result was not very impressive," Chou said. The government's 500 million Taiwan dollar stabilisation fund was activated following the resignation two weeks ago of premier Tang Fei, which further depressed the beleagured Taipei market.

Bangkok: Thai share prices rose 0.7 per cent on speculative buying in bank and Financial stocks ahead of third quarter results due this week. The Stock Exchange of Thailand (SET) composite index rose 1.87 points to close at 259.95 and the SET 50 was up 0.18 points at 17.78.

Jakarta: Indonesian share prices closed up 1.4 per cent but off their highs as late profit-taking eroded earlier gains on cautious optimism about the outcome of debt talks in Tokyo. The Jakarta Stock Exchange composite index closed up 5.689 points at 417.439, off a high of 420.657.