HONG KONG, Sept 10: Asian stocks closed mostly down on Wednesday as fears about the health of ailing US investment bank Lehman Brothers fixed the spotlight firmly on the global financial crisis.

Hong Kong led the decliners among major markets, falling 2.4 per cent.

Singapore tumbled 1.9 per cent, while Australia shed 1.5 per cent.Japan, Asia’s biggest bourse, edged into the red too, but South Korea, Taiwan and China managed to make some gains.

But the US firm said it would also announce key strategic initiatives later Wednesday, amid rumours of a last-ditch deal with Wall Street counterpart Goldman Sachs.

TOKYO: Japanese shares slipped 0.44 per cent as investors were on tenterhooks on the fate of troubled US investment bank Lehman Brothers, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 54.02 points to close at 12,346.63. The broader Topix index of all first-section shares closed up a marginal 0.79 points to 1,192.38.

Shares pared early losses on rising speculation Lehman may have found a suitor to raise fresh capital, with rumours swirling in markets that its Wall Street counterpart Goldman Sachs was poised to make a last-minute deal.

People are anticipating that the results aren’t that bad after all, Bjorn Holta, executive director of institutional sales at KBC Securities, told Dow Jones Newswires.

HONG KONG: Hong Kong share prices closed down 2.4 per cent, dealers said.

The benchmark Hang Seng Index was off 491.33 points to 19,999.78. Turnover was 65.31 billion Hong Kong dollars (8.37 billion US).

The US economy continues to be worrisome, but even so we’re seeing buying today among some medium and long-term funds given attractive market valuations, Peter Lai, a director at DBS Vickers, told Dow Jones Newswires.

SYDNEY: Australian share prices fell 1.5 per cent, dealers said.

The benchmark SP/ASX 200 index closed down 74.6 points at 4,905.5, while the broader All Ordinaries fell 80.5 points to 4,961.4. Some 1.38 billion shares worth 6.77 billion dollars (5.47 billion US) changed hands.

The market was volatile, heavy and irrational, CMC Markets senior dealer Dominic Vaughan said.

BHP Billiton slid 3.5 per cent to $34.80 and fellow mining giant Rio Tinto shed 5.1 per cent to $102.03.

SINGAPORE: Singapore shares closed 1.9 per cent down, dealers said.

The blue-chip Straits Timex Index fell 50.80 points to 2,622.41 on volume of 1.06 billion shares valued at 1.36 billion Singapore dollars (948 million US).

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

The Kuala Lumpur Composite Index fell 5.85 points to close at 1,062.70.

Trading continued to be depressed by opposition leader Anwar Ibrahim’s bid to seize power from the ruling coalition.

JAKARTA: Indonesian shares closed down 3.8 per cent, dealers said.

The Jakarta Composite Index fell 73.71 points to 1,885.04.

I think most investors lost their confidence as bad news keeps coming, beating hopes for recovery, Rifki Isnaini Hassan from Andalan Artha Advisindo told Dow Jones Newswires.

WELLINGTON: New Zealand share prices closed 0.97 per cent lower, dealers said.

The benchmark NZX-50 Index dropped 32.52 points to 3,343.86.

Fletcher Building was down 25 cents at $7.50 and Telecom dropped four cents to 3.03.Foreigners were selling in blue-chip stocks, said Grant Williamson, partner at Hamilton Hindin Greene.

MUMBAI: Indian shares ended down 1.6 per cent, dealers said.

The benchmark 30-share Sensex index fell 238.15 points to 14,662.61.

Uncertain global markets and no buying triggers kept investor sentiment down, said a dealer at ICICI Securities.—AFP