HONG KONG, Nov 20, 2007 (AFP) - Asian stocks closed mostly down Tuesday but trimmed losses with a clutch of key bourses, including Tokyo and Hong Kong, bouncing into the black despite concerns about the US economy.

The Japanese stock market ended up 1.12 percent, Hong Kong was 1.13 percent higher, Shanghai edged up 0.45 percent and Singapore rose 0.78 percent.

But Seoul slipped 1.1 percent, Sydney fell 1.7 percent, Mumbai shed 1.8 percent and Manila dropped 2.9 percent in the wake of a slide on Wall Street on Monday.

US shares fell over lingering concerns about the country's credit crunch, which was triggered by a mortgage default crisis among riskier borrowers and has cast a shadow over the world's biggest economy.

The mood brightened a little in Asia on Tuesday after a report that the US central bank was set to release an unexpectedly upbeat assessment of the country's economy.

Experts said such a report could reduce the chances of a US rate cut. However, a rumour that rates would actually fall also helped sentiment in Asia.

TOKYO: Japanese share prices closed up 1.12 percent, swinging back strongly from an early fall as investors decided that the sell-off was overdone, dealers said.

In early trade, Tokyo's key index briefly hit a 16-month intra-day low after a troubled session on Wall Street, dealers said.

The market mood shifted on growing speculation that the US Federal Reserve will again cut interest rates and by a report that the US central bank will give an upbeat assessment of economic growth.

The Tokyo Stock Exchange's Nikkei-225 index gained 168.96 points to close at 15,211.52. The broader Topix index of all first-section shares gained 12.66 points or 0.87 percent to 1,469.27.

But decliners still outnumbered gainers 882 to 734, with 98 issues unchanged. Volume traded rose to 2.7 billion shares from 1.9 billion Monday.

A rumour of unknown origin spread through the market in late trade that the US Federal Reserve will cut interest rates next month, "sparking a buying bout," said Fumiaki Nakanishi of SMBC Friend Securities.

"But once the market cools its head shares could float back down again and open lower Wednesday morning," he said.

Sentiment was also lifted by an online Financial Times report that the Fed was expected to give a brighter forecast for the US economy, even though the report, if true, would likely decrease chances of a rate cut.

Mitsubishi Materials rose eight yen or 1.4 percent to 567 and Nippon Steel Corp. was up 15 yen or 2.4 percent at 644.

Mizuho Financial Group was up 13,000 yen or 2.5 percent at 539,000 and Sumitomo Mitsui Financial Group -- which Monday announced a 30 percent fall in first-half net profit due to subprime-related losses -- rose 14,000 yen or 1.8 percent to 803,000.

Digital camera maker Olympus Corp. was down 40 yen or 0.9 percent at 4,450 after it announced a friendly two billion-dollar deal to buy British medical equipment maker Gyrus Group Plc.

HONG KONG: Hong Kong share prices closed up 1.13 percent as blue-chips recovered from early losses caused by a Wall Street slide, dealers said.

The Hang Seng index closed up 311.04 points at 27,771.21, off a low of 26,404.28 and a high of 27,851.31. Turnover was 146.41 billion Hong Kong dollars (18.77 billion US).

"Recovery by the Japanese and other Asian markets, following a Financial Times report about possible US Fed upbeat economic forecasts, provided the major impetus for the market to change direction," said Andrew Sullivan of Daiwa Securities SMBC Hong Kong Ltd.

China Life finished up 0.85 at 43.45, CCB was up 0.13 at 7.44 and CNOOC rose 0.74 at 13.22.

HSBC was down 0.30 at 135.2, Hong Kong Exchanges and Clearing lost 1.4 to 228.20 and Hutchison Whampoa was flat at 87.90.

Bank of East Asia finished up 2.30 at 50.55 following news that Bank of China (Hong Kong) had acquired a 4.94 percent stake in the lender.

Cheung Kong was up 1.10 to 139.70, Henderson Land was down 0.50 at 64.30 and Sun Hung Kai gained 2.90 at 149.80.

SHANGHAI: Chinese share prices closed 0.45 percent higher as Asian stocks rebounded from a sell-off after a report that the Federal Reserve was unexpectedly upbeat on the US economy, dealers said.

They said the Financial Times report led investors to shrug off early losses despite a warning by Premier Wen Jiabao about the dangers of asset bubbles in the Chinese economy.

"We see rebounds in the neighbouring markets in the afternoon on the upbeat report by the Federal Reserve, which provided a cue for the rally in Shanghai," said Yu Zuojie, an analyst with Shanghai Securities.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed up 23.89 points at 5,293.70 on turnover of 79.33 billion yuan (10.58 billion US dollars).

The Shanghai A-share Index rose 24.83 points or 0.45 percent to 5,557.11 on turnover of 78.79 billion yuan. The Shenzhen A-share Index was up 25.88 points or 1.89 percent at 1,392.93 on turnover of 39.17 billion yuan.

However, analysts said that upcoming flotations would likely heighten concerns about liquidity, keeping the market under pressure.

Baoshan Iron Steel gained 0.61 yuan to 16.26, Tangshan Iron Steel advanced 1.77 yuan to 19.49 and Angang Steel added 2.35 to 26.75.

Industrial and Commercial Bank of China was up 0.04 at 8.16 and China Minsheng Banking Corp. added 0.53 to 16.42.

PetroChina fell 0.63 yuan to 37.44 as investors still thought its A-share price was overvalued.

The Shanghai B-share Index rose 4.74 points or 1.40 percent to 344.09 on turnover of 530.08 million US dollars.

The Shenzhen B-share Index fell 7.55 points or 1.06 percent at 701.38 on turnover of 517.30 million Hong Kong dollars (68.97 million US dollars).

TAIPEI: Taiwan share prices closed little changed as the market recouped early losses driven by an overnight tumble on Wall Street, dealers said.

The weighted index closed up 0.15 points at the day's high of 8,680.86 on turnover of 139.99 billion Taiwan dollars (4.32 billion US).

"The dramatic turnaround toward the close reflects expectations that the market might have hit a near-term bottom, for now at least," said Michael Hsu, an assistant vice president at Taiwan Life Asset Management.

But more volatility was likely in the US and Taiwan, he said.

"To what extent the fallout from the US subprime turmoil may spread further remains anybody's guess," Hsu said.

Decliners led risers 1,380 to 708, with 332 stocks unchanged. A total of 15 stocks closed limit-down while 24 were limit-up.

Taiwan Semiconductor Manufacturing Co. was steady at 60.50 dollars and United Microelectronics Corp. finished unchanged at 20.50.

Flat panel makers continued to stand out as a bright spot. AU Optronics was up 3.10 at 66.20, Chi Mei rose 1.25 at 46.00 and Chunghwa Picture was up 0.60 at 12.45.

Uni-President fell 1.40 to 47.00, Taiwan Cement was down 1.30 at 43.00 and Formosa Plastics shed 2.90 to 84.80.

SEOUL: South Korean share prices closed down 1.1 percent but off their lows, with bargain-hunting in late trading helping the market to recoup earlier losses, dealers said.

The KOSPI index fell nearly four percent in early trade as foreign investors bailed out, following a further slide on Wall Street overnight on worries about the US housing and banking sectors.

But a rebound then took hold and institutional investors turned net buyers, sending the market back above its key support level of 1,850 points.

The index ended 21.23 points or 1.1 percent lower at 1,872.24 after earlier slumping to a low of 1,819.18. Volume was thin, with 327 million shares worth 6.2 trillion won (6.72 billion dollars) changing hands.

"Investors were in near panic earlier, with the 120-day moving average level of 1,870 points easily collapsing. The late rebound is, of course, a relief but it seems the turbulence is not over yet," said Daewoo Securities analyst Lee Jae-Kwang.

POSCO rebounded 8,000 won to 579,000 after falling to as low as 546,000 earlier. SK Energy jumped 6,500 or 3.9 percent to 173,000 won on a strong sales outlook, aided by the rise in oil prices.

Hyundai Securities surged 1,300 on or 7.2 percent to 19,250 on market speculation that Kookmin Bank may acquire the brokerage in a bid to set up a leading financial holding company.

Kookmin Bank slid 3,100 or 4.6 percent to 65,100 won and Woori Financial lost 650 or 3.6 percent to 17,300.

SYDNEY: Australian share prices closed down 1.7 percent after a fall in US stocks, dealers said.

The benchmark S&P/ASX 200 index closed down 109.8 points at 6,425.4, while the broader All Ordinaries closed down 111.1 points or 1.7 percent at 6,490.2.

"It becomes clearer and clearer that we're in the middle of a correction. Who knows how much more it's going to deteriorate," said Marcus Meuller, a director at Reynolds & Co.

About 1.60 billion shares worth 6.67 billion Australian dollars (5.90 billion US) changed hands, with 383 stocks closing up, 934 closing down and 320 unchanged.

BHP Billiton lost more than three percent to close 1.29 dollars down at 40.30 dollars, while Rio Tinto lost 4.10 dollars or more than three percent to 131.90 dollars.

Woodside Petroleum fell 70 cents to 47.80 dollars. Santos lost 30 cents to 13.20 dollars.

Commonwealth Bank was down 1.30 dollars or 2.15 percent at 59.25 dollars, National Australia Bank was down 57 cents at 42.08 dollars, Westpac was down 37 cents at 27.65 dollars while ANZ was up 29 cents at 28.34 dollars.

Bendigo Bank jumped 8.44 percent or 1.14 dollars to 14.65 dollars ahead of its merger with Adelaide Bank, whose shares stopped trading on Tuesday up 1.16 or 8.04 percent at 15.58 dollars.

SINGAPORE: Singapore share prices closed 0.78 percent higher, mirroring regional gains on hopes the Federal Reserve will release a set of upbeat forecast on the US economy, dealers said.

The main Straits Times Index rose 26.55 points to 3,438.27 on volume of 2.26 billion shares worth 2.88 billion Singapore dollars (2.0 billion US). There were 338 rising issues, 509 losers and 854 were even.

"The market is not basing its movement on fundamentals but on sentiment," said K Ajith, an analyst at UOB Kay Hian.

DBS Group rose 20 cents to 19.60 dollars, United Overseas Bank gained 40 cents to 19.60 dollars and Oversea-Chinese Banking Corp. was flat at 8.40 dollars.

Singapore Airlines was steady at 17.90 dollars.

KUALA LUMPUR: Malaysian share prices closed down 0.6 percent but off lows after a rebound in Asia amid reports the Federal Reserve will publish upbeat economic forecasts for the US, dealers said.

The Kuala Lumpur Composite Index (KLCI) was down 8.21 points at 1,371.70 off a low of 1,359.73.

Decliners outnumbered advancers 520 to 286, with 283 stocks unchanged. Trading volume was 1.2 billion shares valued at 1.6 billion ringgit (473 million US dollars).

National carmaker Proton closed down two sen at 4.94 ringgit. Germany's Volkswagen said talks between it and the Malaysian government on a strategic partnership with Proton had been shelved.

Bumiputra-Commerce, which controls Malaysia's second largest bank CIMB Bank, gained 10 sen to 10.60 ringgit. Malaysia Pacific Industries added 20 sen or 2.2 percent to 9.20 ringgit.

Mobile phone firm DiGi.com was down 1.20 ringgit or 4.6 percent at 24.80 ringgit. Time dotCom lost half a sen to 0.895 ringgit.

BANGKOK: Thai share prices closed 0.13 percent lower as speculation that the US Federal Reserve will cut rates helped staunch losses, dealers said.

The Stock Exchange of Thailand (SET) composite index fell 1.09 points to 830.05 and the blue-chip SET 50 index lost 0.20 points to 606.21.

Turnover was 2.9 billion shares worth 27.5 billion baht (814 million dollars).

"The rate cut speculation helped boost sentiment," said Kavee Chukitkasem, assistant managing director at Kasikorn Securities.

Thailand's top energy firm PTT rose 4.00 baht to 366.00 and its subsidiary PTT Exploration and Production gained 1.00 to 136.00. Thai Oil edged up 0.50 to 85.50.

The kingdom's top lender Bangkok Bank fell 1.00 to 118.00, but the third largest lender Kasikorn Bank rose 1.50 to 84.00.

Thai Airways International lost 1.00 to 37.50, but Thailand's biggest mobile phone operator, Advanced Info Service, was up 0.50 to 86.50.

JAKARTA: Indonesian share prices closed 0.8 percent lower as an Asian rebound helped the local bourse trim earlier losses caused by Wall Street's overnight slump, dealers said.

A ruling late Monday that Singapore's Temasek Holdings had violated Indonesia's anti-monopoly law through investments linked to cell phone firms Telkomsel and Indosat also weighed in sentiment, they said.

The Jakarta Stock Exchange composite index closed down 21.95 points at 2,624.86, off a low of 2,551.03.

Volume was 4.17 billion shares valued at 8.59 trillion rupiah (918.23 million dollars).

"Our market managed to recover in the afternoon session from sharp losses in the morning session following the rebound in most regional markets," said Samuel Sekuritas analyst Christine Salim.

Telkom closed down 350 rupiah to 10,100, off a low of 9,850 and its rival, Indosat, fell 400 rupiah to 8,000.

Nickel and gold miner Antam rose 200 to 4,425. Coal producer Bukit Asam rose 50 to 10,200. Nickel miner Inco gained 250 to close at 107,950.

MANILA: Philippine share prices closed 2.9 percent lower as investors grew risk averse following Wall Street losses, dealers said.

The composite index closed down 104.61 points at 3,540.61, its worst finish in nearly two months.

The broader all-share index fell 59.26 points or 2.7 percent to 2,163.73.

"There's renewed risk aversion and if you can't stand the heat, get out of the kitchen," said Jonathan Ravelas of Banco de Oro-EPCI.

Philippine Long Distance Telephone Co. was down 65 pesos at 3,015.

Bank of the Philippine Islands fell 3.50 to 61. Metropolitan Bank and Trust Co. shed 3.0 to 52.

Ayala Corp., the country's largest conglomerate, fell 10 pesos to 570.

Food and beverage group San Miguel Corp.'s A-shares, limited to local investors, ended down 1.0 at 49.50. Its B-shares were 2.0 lower at 50.

WELLINGTON: New Zealand share prices closed down 1.15 percent following another slump in overseas markets, dealers said.

The benchmark NZX-50 index fell 47.37 points to close at 4,067.30 on turnover worth 149.0 million dollars (112.0 million US).

"Obviously a pretty strong lead from offshore markets being sharply negative, the Dow Jones closing below the support level of 13,000, so we'll be watching that tonight," said Suzanne Kinnaird of Forsyth Barr.

Auckland International Airport shares fell 12 cents to 2.86 dollars after the company downgraded its annual profit forecast and said chief executive Don Huse was to step down at the next annual meeting.

Telecom was down two cents at 4.26 dollars. Fletcher Building fell 18 cents to 11.55 dollars.

MUMBAI: Indian share prices fell 1.8 percent as investors sold blue-chip companies for a fourth straight day on concerns about the US economy, dealers said.

The benchmark 30-share Sensex index fell 352.56 points to 19,280.8, slipping from the day's high of 19,714.22.

"The market fell in the absence of fresh buying triggers," said Apurva Shah, head of research with broker Prabhudas Lilladher.