HONG KONG, Nov 16, 2007 (AFP) - Asian stocks closed down Friday with Hong Kong sliding 4.0 percent after shares tumbled in the US over concerns about the health of the world's biggest economy.

Hong Kong was also hit by fears of an imminent Chinese interest rate hike in the wake of strong economic data, and by a reported move to curb the illegal flow of money from the mainland into the city's bourse.

The slide in Hong Kong was the day's worst in Asia. But other markets suffered too, including Tokyo, which fell by 1.57 percent.

Elsewhere Taipei was down 1.58 percent, Seoul slipped 1.1 percent, Singapore was down 1.05 percent and Sydney fell 1.0 percent.

US woes hit the mood in Asia after a slide on Wall Street.

There are concerns the US is headed for a sharp slowdown and even recession after a mortgage default crisis in its subprime sector comprising loans to riskier borrowers.

The crisis has led to billions of dollars in losses and US house price falls, spooking investors.

TOKYO: Japanese share prices closed down 1.57 percent Friday after a fall on Wall Street and a spike in the yen which hurts domestic exporters, dealers said.

The Tokyo Stock Exchange's Nikkei-225 index dropped 241.69 points to close at 15,154.61. The broader Topix index of all first-section shares fell 27.19 points or 1.81 percent to 1,471.67.

Declining shares far outnumbered gainers 1,409 to 253, with 55 issues unchanged.

Volume traded reached an estimated 1.83 billion shares, down from 1.93 billion on Thursday.

The yen crossed the symbolic level of 110 to the dollar in Asian trade as investors unwound risky carry trades in which they take advantage of Japan's super-low interest rates.

"The yen's rise prompted investors to sell shares," said Hiroichi Nishi, equity chief at Nikko Cordial Securities.

There were also continuing concerns about a mortgage default crisis in the US in its so-called subprime sector, comprising loans to riskier borrowers.

"Resolving the subprime loan problem with rate cuts looks to be impossible," said Credit Suisse chief economist Hiromichi Shirakawa, referring to worries about rising US inflation.

Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center, predicted more trouble ahead next week.

Exporters came under heavy selling pressure, with Toyota Motor Corp. down 110 yen or 1.7 percent at 6110 yen.

Sony Corp. and Canon Inc. both lost ground, with Sony down 60 yen or 1.1 per cent at 5,350 yen, and Canon down 70 yen or 1.3 percent at 5,500 yen.

HONG KONG: Hong Kong share prices closed down 4.0 percent, tumbling due to concerns about the US economy and new restrictions on cash flowing in from mainland China, dealers said.

China's state media reported that commercial banks in Shenzhen have been ordered to limit cash withdrawals in a bid to cut off sources of unauthorised investment in Hong Kong stocks.

The Hang Seng index closed down 1,136.78 points at 27,614.43, off a low of 27,496.15 and a high of 28,120.42. Turnover was 138.30 billion Hong Kong dollars (17.76 billion US).

For the week the index was down 1,168.98 points or 4.06 percent.

"The market was hit hard by negative leads including a possible rate hike in China and weak Wall Street overnight," said Peter Lai, sales director at DBS Vickers.

Eugene Law, the head of research at Celestial Asia Securities Holdings, noted uncertainty over the so-called "through-train" scheme to allow mainlanders to buy Hong Kong stocks.

"It's most unlikely the through-train will start early next year because there are just too many policy issues that regulators need to sort out before getting this programme off the ground," he said.

Law predicts that trade next week will continue to be volatile as investors await more clarity on the US and China's financial policies.

Among large-caps, China Mobile was down 6.4 dollars at 133.2, HSBC was down 2.6 dollars at 136.2, China Life was down 1.4 dollars at 43.45 and HKEx fell 12.2 dollars to 235.0.

SHANGHAI: Chinese share prices closed 0.91 percent lower amid concerns over a possible hike in interest rates by the central bank to curb inflation, dealers said.

The Shanghai Composite Index, which covers A and B shares, fell 48.99 points to 5,316.27 on turnover of 61.64 billion yuan (8.22 billion US dollars).

"The market was lower largely due to the weekend effect, as the central bank often raises interest rates late on Fridays," said Cao Yan, an analyst at Soochow Securities.

China's consumer price index, the main gauge of inflation, rose 6.5 percent in October compared with a year earlier, the government said Tuesday.

On Friday, official data showed urban fixed investment -- a key measure of spending on infrastructure projects -- rose 26.9 percent to 8.9 trillion yuan (1.2 trillion dollars) in the first 10 months of the year.

The State Administration of Taxation also issued new rules late Thursday requiring individuals to declare their capital gains from stock and property investments, dampening the mood.

The Shanghai A-share Index fell 51.43 points or 0.91 percent to 5,581.43 on turnover of 61.24 billion yuan. The Shenzhen A-share Index was down 14.19 points or 1.04 percent at 1,350.16 on turnover of 30.33 billion yuan.

Property developers retreated with Shenzhen Overseas Chinese Town Holdings tumbling 5.90 yuan to 60.10.

But the aviation and military sector surged after regulators said foreign investors would be allowed to "conditionally participate in restructuring" military enterprises.

Beijing Aerospace Changfeng surged 1.02 yuan or by the 10 percent daily limit to 11.21 and Hafei Aviation Industry soared 1.58 yuan or 10 percent to 17.38.

The Shanghai B-share Index fell 3.14 points or 0.92 percent to 337.53 on turnover of 400.87 million US dollars.

The Shenzhen B-share Index closed down 9.25 points or 1.29 percent at 707.45 on turnover of 316.08 million Hong Kong dollars (42.14 million US dollars).

TAIPEI: Taiwan share prices closed 1.58 percent lower after a fall on Wall Street and due to worries that weaker US consumer spending could hit Taiwanese export growth, dealers said.

The weighted index closed down 140.59 points at 8,764.82, after trading in a range between 8,678.55 and 8,790.57, on turnover of 113.83 billion Taiwan dollars (3.52 billion US.)

Decliners outnumbered advancers 1,545 to 561, with 296 stocks unchanged. A total of 11 stocks closed limit-up, while 15 were limit-down.

Tu Jin-lung, chairman of Grand Cathay Investment Services, said that the weakness of international markets had helped to keep the mood downbeat.

"Asian markets reacted to the US woes, and the Taipei market was no exception," Tu said.

Political uncertainty had also unsettled investors, he said.

Taiwan's high court is set to rule on an appeal over a disputed mayoral election.

Taiwan Semiconductor Manufacturing Co. was down 0.40 at 60.50 dollars and United Microelectronics Corp. lost 0.15 to 19.20.

SEOUL: South Korean shares closed 1.1 percent lower, although bargain-hunters pared the fall in late trades, dealers said.

The KOSPI index closed down 21.54 points at 1,926.20, after trading between 1,890.25 and 1,928.93. Volume reached 300 million shares worth 6.3 trillion won (6.87 billion dollars). Decliners beat gainers 497 to 306.

"Fears about the credit crisis in the US continued to haunt investors throughout the session," Seoul Securities analyst Park Seok-Hyun said.

Machinery and shipbuilding stocks ended higher or trimmed earlier losses.

Samsung Electronics fell 13,000 to 557,000 won and LG Electronics slid 5,200 to 98,800 won. Hyundai Motor was off 3,000 at 70,000 won.

Doosan Heavy edged up 500 to 138,500 won. Hyundai Heavy shed 2,000 at 468,000 won. Lotte Shopping rose 1,000 to 406,000 won and KTG climbed 500 to 77,300 won.

SYDNEY: Australian share prices closed down 1.0 percent amid expectations that Wall Street will continue its downward trend, dealers said.

The benchmark S&P/ASX 200 shed 66.7 points to close at 6,461.9 while the broader All Ordinaries fell 68.3 to 6,526.1.

Turnover was 1.58 billion shares worth some 6.39 billion dollars (5.70 billion US). Decliners beat gainers 717 to 516, while 374 stocks were steady.

"Markets continue to be in the grip of continued volatility," said Jamie Spiteri, head of sales trading at Shaw Stockbroking.

Spiteri said the Australian market appeared stronger than some Asian markets, which slipped much more after an overnight sell-off in the US.

Shares in National Australia Bank dropped 1.84 dollars, or 4.2 percent, to 42.16 dollars after going ex-dividend. Australia & New Zealand Banking Group fell 44 cents to 27.70 dollars.

Westpac shed 23 cents to 27.99 dollars and Commonwealth Bank shares dropped 48 cents to 59.97 dollars.

CMC Markets senior dealer Dominic Vaughan said banks were coming under a lot of pressure because of concerns about the subprime mortgage market in the US.

Market heavyweight BHP Billiton was unchanged at 41.15 dollars but its rival Rio Tinto, for which it has made a takeover bid, fell 3.38 dollars to 131.21 dollars on speculation it could make a counterbid for BHP.

SINGAPORE: Singapore share prices closed 1.05 percent lower as worries deepened about a crisis in the US subprime mortgage sector, dealers said.

The key Straits Times Index closed 36.63 points lower at 3,440.96 on volume of 1.82 billion shares worth 2.11 billion dollars (1.45 billion US).

"A lot of the shares have pulled back quite a fair bit from the highs," said Chan Tuck Sing, dealing director at UOB Kay Hian.

In the property sector, CapitaLand slipped 15 cents to 6.80 Singapore dollars, City Developments was 10 cents lower at 14.10 and Keppel Land declined 10 cents to 7.85.

Singapore Airlines slipped 40 cents to 17.90.

KUALA LUMPUR: Malaysian share prices closed down 0.2 percent after a fall on Wall Street overnight, dealers said.

The Kuala Lumpur Composite Index (KLCI) closed down 3.36 points at 1,386.64.

Trading volume was 1.01 billion shares worth 1.82 billion ringgit (538 million dollars).

"I don't think the KLCI has decoupled from US markets. It is just that the local market has always been sort of a laggard," said Michael Lai, an investment director of Fortress Capital Asset Management.

The local market lagged regional peers in a recent Asian rally and so may not fall as much as they do, he said.

Among heavyweights, Malaysia's largest bank, Maybank, closed down 10 sen at 11.30 ringgit as investors cashed in gains in late trade.

BANGKOK: Thai share prices closed 0.75 percent lower as investors sold energy-linked stocks due to easing global oil prices, dealers said.

The Stock Exchange of Thailand (SET) composite index fell 6.45 points to 849.07 and the blue-chip SET 50 index lost 5.98 points to 622.06.

Turnover was 1.9 billion shares worth 13.8 billion baht (407 million dollars).

"Easing oil prices prompted selling in the energy sector," said Wiriya Lappromrattana, a senior market analyst at Kiatnakin Securities.

Energy shares alone account for nearly 30 percent of the Thai bourse.

Thailand's top energy firm PTT dropped 6.00 baht to 372.00 and its subsidiary PTT Exploration and Production fell 1.00 to 140.00.

The kingdom's top lender Bangkok Bank declined 1.00 to 120.00.

JAKARTA: Indonesian share prices closed 1.4 percent lower as renewed selling on Wall Street and on regional markets sparked profit-taking, dealers said.

The Jakarta Stock Exchange composite index closed down 37.12 points percent at 2,668.70, on volume of 2.74 billion shares worth 4.81 trillion rupiah (519,270,000 dollars).

"After today's selloffs, I think investors will be a bit more cautious about the market outlook," said Mulya Chandra, an analyst at CIMB-GK Securities.

The country's largest bank, Bank Mandiri, lost 75 rupiah to 3,475, Bank Central Asia dropped 150 to 6,950, Bank Rakyat Indonesia fell 200 to 7,750, Bank Danamon shed 50 to 8,750 and Bank Negara Indonesia dropped 40 to 1,890.

MANILA: Philippine share prices closed 2.0 percent lower after a sell-off on Wall Street sparked by concerns about the US economy, dealers said.

The composite index fell 73.26 points to 3,598.96. The broader all-share index lost 37.72 points to 2,210.30.

Volume amounted to 3.8 billion shares worth 5.3 billion pesos (122.06 million dollars.)

The market spent the entire session in negative territory with the selling pressure intensifying in the last hour of trading. Even property developers were not spared.

"Domestic fundamentals are strong and the property sector itself is experiencing an unprecedented boom. There is no other reason that I can see except US stocks are down," DBP-Daiwa Securities' Ron Rodrigo said of the falls.

Megaworld Corp., the country's second-largest home builder, fell 20 centavos to 3.95 pesos.

Philippine Long Distance Telephone Co., the nation's biggest company by market value, retreated 35 pesos to 3,015 pesos, snapping a three-day rise.

Food and beverage group San Miguel Corp's A-shares, limited to local investors, fell 1.50 pesos to 51.50 pesos. Its B-shares, open to foreigners, slipped 2.50 pesos to 51.50 pesos.

WELLINGTON: New Zealand share prices closed little changed, shrugging off weakness in overseas markets, dealers said.

The benchmark NZX-50 index rose 1.13 points to 4,114.18 on turnover worth 138.5 million dollars (104.5 million US).

Auckland International Airport fell three cents to 3.01 dollars, after the Canada Pension Plan Investment Board (CPP) submitted its formal cash bid for a 40 percent stake at 3.6555 dollars a share.

The airport company said it had asked its advisers to seek other offers.

"Auckland Airport is really in play and directors will be looking now to achieve the best deal possible for their shareholders," said Hamilton Hindin Greene partner Grant Williamson.

Fisher & Paykel Appliances rose four cents to 3.64 dollars, gaining a total of about 30 cents since releasing its first half results last week.

Market leader Telecom rose four cents to 4.25 dollars after falling nine cents Thursday, second-ranked Fletcher Building was up eight cents at 11.66 and Contact Energy lost five cents to 8.85.

MUMBAI: Indian share prices closed down 0.44 percent in choppy trade as global markets retreated amid uncertainty about US economic prospects, dealers said.

They said investors chose not to build up positions ahead of the weekend amid losses for other Asian markets on Friday.

The benchmark 30-share Sensex index fell 86.53 points to 19,698.36, recovering from a day's low of 19,472.51.

"Trading was choppy with sharp bouts of buying and selling. We expect the markets to remain rangebound and volatile due to global concerns," said Naresh Garg, the chief investment officer at Sahara Mutual fund.