Agence France-Presse

HONG KONG - Asian stocks closed mainly higher Monday with bargain hunters dominating trade, however, broader fears over the state of the United States economy continued to weigh on sentiment.

Business remained subdued with some markets still closed for Easter but dealers said Wall Street advances last Thursday before the break added a touch of optimism that the worst of the housing and credit crisis may be over.

A multi-pronged offensive by the Federal Reserve to keep the financial system functioning and slash interest rates aggressively appears to have calmed troubled markets for now, even though many investors remain cautious.

Taipei, up 3.99 percent, led gains after the outcome of Saturday's election raised the prospect of improved ties with China. Singapore surged 3.64 percent Seoul rose 0.6 percent, and Kuala Lumpur was 1.0 percent higher.

Mumbai was 1.96 percent higher, Manila gained 1.8 percent, Bangkok rose 0.49 percent and Jakarta rose 0.7 percent while Tokyo finished the day steady.

However, Shanghai bucked the trend with a dramatic 4.49 percent plunge as fund managers slashed their positions in banks and PetroChina.

Sydney, Hong Kong, and Wellington were closed for public holidays.

TOKYO: Japanese share prices ended mixed as investors awaited fresh clues on the health of the global economy following a long holiday weekend for major overseas markets.

The market welcomed a rise in the dollar, which neared the symbolic 100 yen level, but a government survey showed Japanese business confidence slumping to a four-year low due to jitters about the world economic outlook.

The Nikkei-225 index ended down a marginal 2.48 points at 12,480.09.

Activity was subdued in the absence of trading leads from overseas where many major markets were closed on Friday. Turnover dropped to 1.6 billion shares from 1.82 billion on Friday.

Shares were buoyed by the recent stability of the yen and an easing of concerns about the US economy in the wake of efforts by the Federal Reserve to ease gridlock in credit markets, dealers said.

The dollar edged up to 99.90 yen in Tokyo afternoon trade from 99.62 in late trade here on Friday.

But gains were capped by a government survey showing a deterioration in business sentiment, reflecting growing concern about profits.

"While weak business sentiment dampened the market, investors were relieved that concern (about the US economy) is less pessimistic than before," said Hiroichi Nishi, equity chief at Nikko Cordial Securities.

HONG KONG: Closed.

SYDNEY: Closed.

SHANGHAI: Chinese share prices closed 4.49 percent lower on massive sales by fund managers of PetroChina shares and other large-cap issues.

Dealers said the index edged higher briefly in early trade amid bullish sentiment created after regulators approved four new fund products over the weekend, but gains soon reversed as large caps came under pressure.

The Shanghai Composite Index, which covers both A and B shares, shed 170.39 points to 3,626.19 on turnover of 88.5 billion yuan (12.6 billion dollars).

PetroChina, the biggest index component, closed down 5.71 percent or 19.83 yuan, after hitting an all-time low of 19.80.

"The gain was not sustainable because institutional investors continued to cut positions in large caps such as banks and PetroChina," said Chen Huiqin, an analyst at Huatai Securities.

TAIPEI: Taiwan share prices closed 4.0 percent higher as investors cheered opposition Ma Ying-jeou's landslide victory in Taiwan's presidential election over the weekend.

Dealers said gains were spread across the board, but tourism and construction outperformed on hopes for more China-related business following the election.

The weighted index closed up 340.36 points at 8,865.35. Turnover expanded by 58 percent from to 270.87 billion Taiwan dollars (8.97 billion US).

Ma trounced Frank Hsieh of the ruling Democratic Progressive Party (DPP) in a campaign centred on improving relations with China and reviving the island's faltering economy.

Ma has pledged, among other things, to work for direct transport links with the mainland, facilitating increased tourist arrivals and enabling Taiwan financial firms to move into China.

"The post-election rally is likely to run for at least a couple of sessions before the market heads for consolidation," said Alex Huang, an assistant vice president at Mega International Investment Services.

SEOUL: South Korean share prices closed 0.6 percent higher, with investors hopeful that the worst of the US credit crisis has passed.

The KOSPI index ended 9.61 points higher at 1,655.30. Volume was 254 million shares worth 3.8 trillion won (3.81 billion dollars).

The benchmark index has now gained more than 80 points since Tuesday, recouping all the heavy losses since the problems at US bank Bear Stearns.

But dealers refrained from making major investment decisions, wary of Wall Street's opening later Monday and upcoming key economic data at home and abroad.

Samsung Securities analyst So Jang-Ho said the recent selling caused by fears about financial troubles and the economic slowdown in the US appeared to be winding up.

However, "the market will likely remain vulnerable to external factors, given the lack of strong momentum," he said.

SINGAPORE: Singapore share prices closed 3.64 percent higher on bargain hunting after the market's recent sharp losses amid fears of a recession in the United States.

The Straits Times Index jumped 102.88 points to 2,927.79 on volume of 1.22 billion Singapore shares worth 1.49 billion Singapore dollars (1.1 billion US).

"Barring unexpected nasty shocks from the US, the local market should renew its recovery past 3,000 to 3,100 (points), which is a modest target," said Najeeb Jarhom, head of research for retail investors at Amfraser Securities.

Investors took their cue from Wall Street's performance before it closing for a public holiday on Friday, as the Dow jumped 260 points on bargain-hunting and a milder-than-expected drop in a regional manufacturing report.

Jarhom said the 3,000-point mark should not be a strong resistance level "if the coming reporting season for first quarter 2008 and fiscal year ending March contains pleasant earnings surprises from blue chip companies."

KUALA LUMPUR: Malaysian share prices closed 1.0 percent higher due to bargain hunting in selected bluechips such as financial, construction and mining-related stocks.

The composite index closed up 11.96 points at 1,201.02 on volume of 513 million shares, valued at 909 million ringgit (285 million dollars).

"The market was up on a technical rebound today (after recent losses)," said Phua Kwee Hock, an analyst at SJ Securities.

"The rising dollar and falling gold price helped to improve investor sentiment," he added.

Phua said falling commodity prices will help shift funds back to equities, while the rising dollar reflects sentiment that the US economy will soon recover.

BANGKOK: Thai share prices closed 0.49 percent higher as small investors chased gains after losses last week, tracking other markets in the region.

Dealers said major investors were absent because of the Easter holiday in many big markets.

The composite index rose 3.96 points to 807.28 on turnover of 1.80 billion shares worth 8.70 billion baht (275.87 million dollars).

"Trading in the market was quite thin today because major investors stayed away on the Easter holiday," said Chai Chirasevenupraphand, market strategist at Capital Nomura Securities.

Chai said the Thai market rose in line with other markets in the region, led by banking and energy sh

JAKARTA: Indonesian share prices ended 0.7 percent higher, lifted by a technical rebound in late trade in select big caps led by index heavyweight Telkom, coal producer Bumi Resources and Bank Mandiri.

The composite index was up 15.73 points at 2,339.29 on volume of 1.75 billion shares valued at 3.03 trillion rupiah (329.71 million dollars).

Trading volume was thin, indicating that some market players opted to stay on the sidelines after the long weekend, awaiting fresh leads.

"Trading was quite volatile today (Monday). The key index, however, managed to end in positive territory thanks to strong late buying interest in select big caps," said Indomitra Securities analyst David Ferdinandus.

Most mining stocks were pressured by a retreat in the global prices of gold and nickel last week, moving in tandem with the drop in oil prices, he said.

MANILA: Philippine share prices closed 1.8 percent higher on bargain hunting after a long Easter break, but trading was light as worries over the US economy remained.

The composite index rose 49.92 points to 2,867.50. A total of 738.1 million shares worth 2.2 billion pesos (52.8 million dollars) changed hands.

"But investors remain uneasy ahead of a slew of US economic data coming out this week. They are still uncomfortable getting back into the market after recent selloffs triggered by a worsening credit crisis in the US," said Ron Rodrigo at DBP-Daiwa Securities.

Investors will be keeping an eye on US housing and consumer confidence data due out this week, they said.

WELLINGTON: Closed.

MUMBAI: Indian share prices rose 1.96 percent after global oil prices fell from recent record highs.

Dealers also said bank stocks led the gains as investors saw value after last week's US Federal Reserve 75 basis point cut in its key lending rate.

The Sensex index rose 294.57 points to 15,289.4.

"This is a relief rally after a corrective phase," said Bhaskar Kapadia, a partner with brokerage Pyramid Securities.