Investors, glued to screens for signs of a US recession that could infect the global economy, saw more evidence that growth in the world's largest economy was slipping.

The Dow Jones industrial average dipped 0.2 per cent on Friday on concerns about consumer spending after an index of consumer sentiment fell to a 16-year low and retailer Best Buy warned that shopper traffic dropped off after the holidays.

'Despite the weak data, Wall Street eked out only a small decline on Friday,' said Mr Kim Young-gak, an analyst at Hyundai Securities.

'Whereas investors are still bracing for more potential negatives and additional market falls, they seem to be betting that the scope of any losses would not be as deep as the one seen in January.'

MSCI's measure of Asia Pacific stocks excluding Japan was up 0.6 per cent by 10am Singapore time, but is still down nearly 10 per cent so far this year.

KUALA LUMPUR
Malaysian share prices closed 1.0 per cent lower on Monday as investors remained cautious following Wall Street's fall and concerns over the US economy, dealers said.

The Kuala Lumpur Composite Index fell 14.36 points at 1,412.83.

HONG KONG
Hong Kong stocks fell on Monday, as a four-day gaining streak led investors to pocket recent gains, while global lender HSBC Holdings plc sank further amid deteriorating credit markets.

Telecom stocks saw active trade, with China Netcom hitting all-time highs on talk of a government meeting over the weekend to discuss the industry's long-awaited consolidation.

Hong Kong paced gains in other Asian equity markets in early trade, but eased on the approach of 23,500 points.

'We're seeing profit-taking at high levels as investors are hesitant to chase at those levels,' said Andrew To, sales director at Tai Fook Securities.

'In the near-term, we'll see sideways consolidation.'

The benchmark Hang Seng Index closed down 1.6 per cent, or 389.18 points, at 23,759.25. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, fell 1.5 per cent, or points, to 13,630.25.

Mainboard turnover was HK$78.1 billion (S$14.11 billion) compared to Friday's HK$83 billion.

Investors remain skittish about credit markets after a credit ratings downgrade hit bond insurer FGIC, which could lead to more write-downs at banks that own securities covered by the company.

HSBC slid a further 1.9 per cent to HK$112.6. Bank of East Asia, which reported in-line earnings last Friday, also fell further amid expectations of more writedowns for its collateralised debt obligation holdings hit by the US subprime crisis. Its shares ended down nearly 3 per cent at HK$40.45.

SHANGHAI
Chinese share prices closed 1.58 per cent higher on Monday on expectations of fresh capital coming into the market after the securities regulator approved two more equity funds, dealers said.

They said these steps are part of government efforts to support the market after recent sharp declines due to concerns over the US subprime crisis and China's tightening monetary policy.

The benchmark Shanghai Composite index, which covers both A and B shares, closed up 71.02 points to 4,568.15 on turnover of 92.54 billion yuan (S$18 million).

TOKYO
Japanese share prices closed narrowly mixed on Monday as investors took profits on an early rally amid ongoing jitters about the outlook for the US economy, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index closed up 12.84 points or 0.09 per cent at 13,635.40, while the broader Topix index of all first-section shares dipped 1.90 points or 0.14 per cent to 1,332.99. -- AFP, BERNAMA, REUTERS