July 06, 2006	Thursday	Jumadi-ul-Sani 9, 1427

HONG KONG, July 5: Asian stocks were mostly lower in subdued trade on Wednesday, with sentiment unsettled after North Korea test-fired seven missiles, including a failed launch of the long-range Taepodong-2.

Dealers said the sell-off was limited after the Taepodong-2, which is thought capable of reaching US soil, apparently failed less than a minute after lift-off, dampening the impact.

The tests by the Stalinist state triggered a flurry of diplomatic initiatives, headlined by a meeting of the United Nations Security Council to be convened later Wednesday, with the news generally giving investors an excuse to take profits on recent gains.

Trading was also slower than usual as US markets were closed for the Independence Day holiday Tuesday, denying Asian investors an all-important lead while underlying sentiment remained solid amid waning fears over interest rate hikes.

TOKYO: Share prices stumbled as investors reacted nervously to news of a series of missile launches by North Korea.

North Korea early Wednesday launched six missiles, including one capable of reaching US soil, although all splashed down in the Sea of Japan (East Sea), according to US and Japanese officials.

The Nikkei-225 index closed down 114.56 points or 0.73 per cent at 15,523.94 as volume dipped to 1.52 billion shares from 1.56 billion Tuesday.

HONG KONG: Share prices closed 0.62 per cent lower as investors locked in profits following gains of more than 600 points in the last four trading days, with China financial stocks especially hit.

SYDNEY: Share prices closed 0.15 per cent lower, with investors lacking an offshore lead due to the US Independence Day public holiday overnight.

SINGAPORE: Share prices closed 1.01 per cent lower due to an absence of fresh leads and on regional security concerns following North Korea's missile tests.

KUALA LUMPUR: Share prices closed flat, losing initial gains to profit-taking amid concern in regional markets over North Korea's missile tests.

JAKARTA: Share prices closed flat ahead of the central Bank Indonesia's interest rate meeting this week with telecoms and select banks pressured by some profit-taking.

WELLINGTON: Share prices closed 0.19 per cent higher, with trading lacking direction following the July 4 holiday which closed Wall Street.

The NZX-50 index rose 6.94 points to 3,604.74 on turnover worth 127.9 million New Zealand dollars (78.1 million US).

MUMBAI: Share prices closed up 2.41 per cent on expectations of a strong earnings performance by Indian companies when the results season gets under way next week.

—AFP