June 28, 2007	Thursday	Jamadi-us-Sani 12, 1428

HONG KONG, June 27: Asian stocks closed mostly lower on Wednesday with investors again nervous and cashing-up ahead of a US interest rate meeting by the Federal Reserve to be held later in the day.

Anxiety has been a dominant feature on Wall Street and in Asian trade over recent days particularly amid fears for mortgage-related securities, which have knocked two hedge funds run by Bear Stearns.

Lingering concerns over mortgages sold to Americans with sketchy credit histories, a fall in new US home sales and a sharp plunge in consumer sentiment resulted in a weaker performance in New York on Tuesday.

This led Tokyo down 1.2 per cent, Sydney tumbled 1.97 per cent, Wellington shed 1.16 per cent, Manila slumped 1.91 per cent, Seoul was off 0.94 per cent, Hong Kong was down 0.45 per cent and Taipei fell 0.24 per cent.

Elsewhere, Singapore shed 0.56 per cent, Kuala Lumpur slumped 0.70 per cent on a weaker local currency while Jakarta was down 1.31 per cent and Mumbai slipped 0.48 per cent.

TOKYO: Share prices closed down 1.20 per cent, dropping below the key 18,000 points level as overnight falls on Wall Street and a firmer yen scared off buyers.

Dealers said investors were cautious ahead of the release of further US and Japanese economic data, and Thursday's Federal Reserve interest rate decision.

The Nikkei-225 index fell 216.83 points to 17,849.28. Turnover was 1.87 billion shares, up from 1.76 billion Tuesday.

HONG KONG: Share prices closed 0.45 per cent lower as some traders squared off positions ahead of the expiry of June futures contracts Thursday.

China Mobile led mainland firms lower despite a strong finish by China's A-share markets.

The Hang Seng Index closed down 98.01 points at 21,705.56 on turnover of 78.78 billion Hong Kong (10.08 billion US) dollars.

SYDNEY: Share prices slumped 1.97 per cent as weakness in the resources and banking sectors extended the market's negative run to five straight sessions.

Dealers said there were no positive leads as investors continued nervous ahead of the US Federal Reserve meeting Wednesday and Thursday, with the market wanting to hear what the central bank has to say on the interest rate outlook.

There appears to be strong resistance at around 6,400 points, leaving stocks vulnerable in the absence of a supportive lead.

SINGAPORE: Share prices closed 0.56 per cent lower despite late bargain-hunting that kept the index above the crucial 3,500 points support level.

The Straits Times Index closed down 19.60 points at 3,505.50 on volume of 4.01 billion shares, valued at 3.31 billion dollars (2.16 billion US).

KUALA LUMPUR: Share prices closed 0.70 per cent lower due to concerns that foreign funds may be pulling out of the local market due to the weaker ringgit.

The composite index closed down 9.56 points at 1,357.43 on volume of 1.2 billion shares, valued at 1.992 billion ringgit (586 million dollars).

Construction group Gamuda declined 0.25 ringgit to 8.20.

JAKARTA: Share prices closed 1.31 per cent lower, pressured by Wall Street's slide overnight and on mounting caution ahead of a two-day Federal Reserve meeting.

The composite index closed down 28.204 points at 2,125.338 on volume of 3.34 billion shares valued at 3.22 trillion rupiah (352.88 million dollars).

The weaker rupiah also added to the downward pressure, with big-cap stocks and mining issues taking the brunt of the selling.

WELLINGTON: Share prices closed 1.16 per cent lower as Air New Zealand stock dived and softening economic data dented sentiment. The NZX-50 Index was down 48.76 points at 4,203.27 on turnover worth 201.76 million dollars (153.18 million US).

Air New Zealand plunged 25 cents to 2.65 dollars as nearly 46 million shares worth 123.8 million dollars changed hands.

The fall was prompted by Qantas selling its 4.2 per cent stake, a leftover from the two airlines' failed plans for a strategic alliance.

MUMBAI: Share prices closed 0.48 per cent lower in line with global markets ahead of a monetary policy meeting of the US Federal Reserve.

Dealers said sentiment was also cautious ahead of the expiry of the local monthly derivatives contract on Thursday.

The 30-share Sensex index fell 70.02 points to 14,431.06.

Software stocks however recovered as the rupee weakened against the dollar to 41.01 on Wednesday from 40.9. Software firms in India bill many of their clients in dollars and a weaker rupee boosts local currency earnings.—AFP