TOKYO
Japan's Nikkei fell on Friday to its lowest close since November 2005, pushed down by fears about the Japanese economy and a report that Merrill Lynch will post larger than expected losses on the subprime mortgage crisis.

Retailers and property shares tumbled, with Tokyu Land Corp down 7.6 per cent, helping to make the real estate subindex the worst performer on the day.

The Nikkei fell 2 per cent just before the close to touch an intraday low of 14,096.54. It finished down 1.93 per cent, its lowest close in 27 months, shedding 277.32 points. The broader Topix was down 1.70 percent at 1,377.58.

SHANGHAI
China's main stock index rose to a two-month closing high on Friday, helped by strong gains in banking stocks on earnings optimism and a jump in airline shares on restructuring hopes.

The Shanghai Composite Index erased earlier losses to end 0.52 per cent higher at 5,484.677 points, although losers outnumbered gainers by 537 to 316..

KUALA LUMPUR
The Kuala Lumpur Composite Index (KLCI) rose 24.56 points to 1,516.22 at midday.

HONG KONG
Hong Kong stocks fell on Friday following a report that financial services giant Merrill Lynch is expected to suffer higher-than-forecast losses, sending HSBC Holdings to a fresh two-year low.

The benchmark Hang Seng Index closed down 1.3 per cent at 26,867.01.

The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, closed down 1.2 per cent at 15,833.75. -- REUTERS, AFP