The Federal Reserve chopped borrowing costs by 0.50 percentage points to 3.00 per cent on Wednesday, following an emergency cut last week during a global stocks meltdown, but the latest move failed to lift many Asian markets.

The exceptions were Japan, Asia's biggest bourse, which closed up 1.85 per cent, and South Korea, where share prices ended up 2.2 per cent.

Asia's other major stock markets all ended in the red.

The Fed slashed borrowing costs by 0.75 percentage points last week to battle the looming economic slowdown, while US lawmakers have just approved an urgent 157-billion-dollar economic stimulus package.

But investors remain unconvinced that the measures taken so far will revive the US quickly enough to avert a big slowdown, and Wall Street fell on Wednesday despite the Fed's move.

Official data released on Wednesday showed US economic growth had slowed sharply to an annual rate of just 0.6 per cent in the last quarter of 2007.

A mortgage default crisis among so-called 'subprime' - or riskier - US borrowers has ballooned into a global credit crunch threatening a recession in America and roiling financial markets.

KUALA LUMPUR
Malaysian share prices rose 0.7 per cent on Thursday as investors set aside worries over the US economy to build positions ahead of an anticipated Chinese New Year rally next week, dealers said.

The Kuala Lumpur Composite Index (KLCI) ended the session up 9.17 points at 1,393.25.

The local market will be closed on Friday for a public holiday, and Malaysians will celebrate Chinese New Year on Feb 7 and 8.

HONGKONG
Hong Kong blue chips slid for a second straight day on Thursday as investors reduced their holdings, unnerved by more bad news ranging from China's ongoing weather problems to possible credit downgrades of top US bond insurers.

The market finished January down 15.7 per cent, its worst monthly performance since Oct. 1997 amid growing risks of a U.S. recession.

The benchmark Hang Seng Index ended down 0.8 per cent at 23,455.74.

The China Enterprises index of H-shares , or Hong Kong-listed shares in mainland companies, fell 2.1 per cent to 12,485.07.

SHANGHAI
China's stock market fell on Thursday and the main index posted a loss of 16.7 per cent for January, its second largest monthly drop this decade, because of weak foreign markets and concern about an economic slowdown.

The benchmark Shanghai Composite Index ended the day down 0.78 percent at a five-month closing low of 4,383.393 points. Losing Shanghai stocks overwhelmed gainers by 780 to 103.

The overall market was weak for most of the day and sagged further in the afternoon as top Chinese coal producer Shenhua Energy 1088.

HK dived 4.0 per cent to 56.46 yuan, partly because investors were preparing for Friday's Shanghai debut of shares in China Coal Energy .

TOKYO
Japanese share prices closed 1.85 per cent higher on Thursday after the Federal Reserve slashed interest rates again to try to stave off the threat of a US recession, dealers said.

They said the market picked up steam after losses in early trade as market players took interest in shares of major companies amid the ongoing release of corporate earnings in Japan.

The Tokyo Stock Exchange's benchmark Nikkei index rose 247.44 points to finish at 13,592.47.

The broader Topix of all first-section shares finished up 26.20 points or 1.98 per cent at 1,346.31.-- AFP, REUTERS