The Indian stock market rose 0.29 per cent to a record close on optimism about corporate earnings while Malaysia jumped 1.3 per cent to all-time high amid speculation it could soon hold general elections.

Elsewhere, investors recovered some poise after wobbling earlier in the week over fears of a US economic recession, but such concerns continued to cast a long shadow over Asia.

Japanese share prices edged up 0.19 per cent and Taiwan was up 1.01 per cent.

But the region's other key markets ended down, including a 0.5 per cent fall in Australia.

The US has been hit by a mortgage default crisis in the subprime sector comprising riskier borrowers.

The crisis has led to billions of dollars in losses, a credit crunch and a housing market downturn.

Analysts fear the US, a key buyer of Asian exports, is heading for a recession.

KUALA LUMPUR
Malaysian share prices closed 1.3 per cent higher on Tuesday amid mounting speculation that general elections could be held as early as next month, dealers said.

The Kuala Lumpur Composite Index (KLCI) closed up 18.97 points at 1,489.74.

HONG KONG
Hong Kong-listed China shares gained on Tuesday after a strong earnings forecast by China Merchants Bank lifted the Chinese banking sector.

But the main blue chip index finished lower as investors cashed in shares in Hong Kong property developers a day after they ramped up on expectations of further US interest rate cuts.

The benchmark Hang Seng Index ended down 0.3 at 27,112.90.

The China Enterprises index of H-shares , or Hong Kong-listed shares in mainland companies, gained 0.4 per cent to 15,659.71.

SHANGHAI
Chinese share prices closed slightly lower on Tuesday, losing 0.13 per cent amid profit-taking after four consecutive days of gains, dealers said.

They said the market extended gains in morning trade encouraged by strong earnings forecasts among financial stocks for last year but changed direction late in the session as investors chose to lock in profits.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed down 6.81 points at 5,386.53 on turnover of 184.6 billion yuan (S$36.2 billion).

TOKYO
Japanese share prices closed up 0.19 per cent on Tuesday, reversing early losses as bargain hunters emerged following the market's slump to 17-month lows, dealers said.

They said shares rebounded for the first session in five as investors managed to set aside jitters about the health of the US economy.

The Tokyo Stock Exchange's benchmark Nikkei index rose 28.12 points to end at 14,528.67. The broader Topix index of all first-section shares added 10.35 points or 0.74 per cent to 1,403.06 -- REUTERS, AFP