HONG KONG, July 14: Asian stocks closed mostly down on Monday despite moves in the US to shore up the country’s huge but troubled mortgage sector, with investors also jittery ahead of key economic data.

Taiwan and Australia led the declines among major markets, falling more than one per cent. Japan, Hong Kong, South Korea and Singapore also fell in the wake of a Wall Street slide on Friday.

The weak Asian performance came after US Treasury Secretary Henry Paulson announced Sunday bigger credit lines for Fannie Mae and Freddie Mac, which offer vital support to the multi-trillion-dollar US mortgage market.

The move initially cheered some Asian investors Monday, but the optimism soon waned. Dealers said there was nervousness ahead of upcoming results from heavyweight US banks and testimony from central bank chief Ben Bernanke.

TOKYO: Japanese share prices ended with modest losses, giving up early gains as optimism over US steps to shore up two troubled mortgage giants receded, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 29.53 points or 0.23 per cent to end at 13,010.16. The broader Topix index of all first-section shares slipped 5.19 points or 0.40 per cent to 1,280.72.

The Nikkei may lack a clear sense of direction in the coming few sessions, Norio Shimura, deputy chief of the equities department at Chuo Securities, told Dow Jones Newswires.

HONG KONG: Hong Kong share prices closed down 0.77 per cent, dealers said.

The Hang Seng Index ended the day down 170.09 points at 22,014.46. Turnover was light at 58.40 billion Hong Kong dollars (7.49 billion US).

The US markets and economy are the biggest worries of investors,” said Eugene Law, head of research at Celestial Asia Securities Holdings.

Banking giant HSBC was one of the biggest fallers, dropping 1.93 per cent to 116.60.

China Mobile fell 0.19 per cent at 105, Hong Kong Exchanges and Clearing gained 0.44 per cent at 113 and China Life shed 0.18 per cent at 28.50.

SYDNEY: Australian shares closed down 1.2 per cent, dealers said.

The benchmark S&P/ASX 200 index fell 58.9 points to end the day at 4,921.0 while the broader All Ordinaries index shed 59.9 per cent to 5,007.9. Turnover was 3.93 billion dollars (3.81 billion US).

Helen Spencer, client advisor at Macquarie Equities, said news that the US government planned a support programme for two key US mortgage firms had lessened selling pressure.

National Australia Bank fell 3.6 per cent to 26.47 dollars. Logistics company Toll Holdings rose 3.0 per cent to 6.57 dollars. Virgin Blue climbed 4.0 per cent to close at 52.5 cents.

SINGAPORE: Singapore share prices closed 0.78 per cent weaker, dealers said.

The blue chip Straits Times Index finished 22.72 points lower at 2,904.12.

Volume totalled 1.03 billion shares worth 981 million Singapore dollars (721 million US).

KUALA LUMPUR: Malaysian share prices closed 0.6 per cent lower, dealers said.

The Kuala Lumpur Composite Index lost 6.39 points to 1,144.0.

Analysts warned of an increasing financial fallout from the political drama.

Bursa Malaysia tumbled 2.9 per cent to 6.70 ringgit while Public Bank, Malaysia’s third largest, lost 1.9 per cent to 10.30 ringgit.

Sime Darby, the largest listed palm oil company in the world, fell 2.4 per cent to 8.25 ringgit. Tenaga lost 1.2 per cent to 8.15 ringgit.

JAKARTA: Indonesian shares ended down 0.8 per cent, dealers said.

The Jakarta Composite Index slipped 17.31 points to 2,259.54.

Lingering concerns over domestic inflation which could hurt earnings of many companies also triggered selling, a trader told Dow Jones Newswires.

Telkom fell 4.6 per cent at 7,350 rupiah and Bank Rakyat Indonesia dropped 4.4 per cent at 5,400 on profit taking.

WELLINGTON: New Zealand shares closed 1.33 per cent lower, dealers said.

The NZX-50 gross index fell 41.44 points to close at 3,080.10.

James Smalley, a client adviser with Hamilton, Hindin, Greene, said developments over the weekend had lent some support to US mortgage firms Fannie Mae and Freddie Mac, avoiding fears of possible panic selling.

Market leader Telecom fell seven cents to 3.32 dollars, Fletcher Building was down 13 cents at 6.25 and Contact Energy fell 20 cents to 7.40.

MUMBAI: Indian shares closed 1.03 per cent lower, dealers said.

The benchmark Mumbai 30-share Sensex index fell 139.34 points to 13,330.51, its third straight day of losses.—AFP