HONG KONG - ASIAN stocks were mixed Wednesday after plummeting the day before, as a sharp fall in crude oil prices overnight offset lingering fears about the U.S. financial markets.

In Japan, the benchmark Nikkei 225 Stock Average edged nearly 0.1 per cent higher to 12,760.8. Hong Kong's blue-chip Hang Seng Index gained 0.2 per cent to 21,223.50.

China, India and Taiwan benchmarks veered lower, while Australia and Singapore markets rose.

Asia's markets had declined sharply on Tuesday as investors worried about the scope of US financial troubles after the government said it would aid mortgage financiers Fannie Mae and Freddie Mac.

Investors were further spooked later on Tuesday when Federal Reserve Chairman Ben Bernanke said the US economy faced 'numerous difficulties' during congressional testimony.

But sentiment brightened some after crude oil prices fell more then US$6 (S$8.10) in New York and continued falling in Asia.

The declining oil prices raised hopes of at least temporary relief from the soaring energy costs that can dent corporate profit margins, hurt consumer spending and slow the world economy.

'People are still jittery about the credit markets, because we don't know what's going to happen next', said Mr Francis Lun, general manager of Fulbright Securities Ltd in Hong Kong.

'But at least the decline in the price of oil gives a little breathing room.'

Oil prices fell further Wednesday in Asia after plunging US$6.44, or 4.4 per cent, to settle at US$138.74 in overnight trade. Late afternoon in Singapore, light, sweet crude for August delivery was down another US$1.62 at US$137.12 a barrel in electronic trading on the New York Mercantile Exchange.

KUALA LUMPUR
Share prices on Bursa Malaysia ended lower for the third consecutive day today on persistent selling pressure, especially in plantation and finance stocks, as investors sold down shares following the internal and external uncertainties, traders said.

At 5pm, the benchmark Kuala Lumpur Composite Index (KLCI) fell 8.18 points or 0.73 per cent to 1,119.42 after opening 1.57 points lower at 1,126.03.

The Industrial Index dropped 7.03 points to 2,390.70, the Finance Index decreased 24.93 points to 8,423.21 and the Plantation Index lost 158.84 points to 6,903.30.

Of the FTSE-BM Index series, the FBMEmas went down 51.40 points to 7,450.67 and the FBM30 was 66.69 points lower at 7,208.16.

The FBM2BRD declined 67.51 points to 5,258.29 and the FBM-MDQ dropped 37.06 points to 4,196.61.

Decliners led advancers 357 to 217 while 228 counters were unchanged, 572 untraded and 37 suspended.

Turnover dropped to 314.825 million shares valued at RM852.687 million from 395.232 million shares worth RM1.031 billion yesterday.

HONG KONG
Hong Kong shares clawed back 0.5 per cent on Wednesday, after opening below the key 21,000 support level for the first time since August 2007, as bargain hunters mopped up blue chips following a two-day sell-off.

Buying was supported by the biggest drop in oil prices in 17 years on Tuesday, which sent airline and refiner stocks soaring.

Esprit Holdings outperformed with a 3.9 per cent jump after its management acquired shares worth HK$197 million (S$34.06 million) over the last two days in the company's first ever buyback.

Capping gains, offshore oil producer CNOOC dropped 3.6 per cent, leading losses on the main index, as oil prices retreated on worries over the health of the US economy.

The Hang Seng Index closed the morning session up 0.5 per cent at 21,272.10, after opening at 20,988.74.

HSBC Holdings climbed 0.5 per cent after losing nearly 5 per cent over the previous two sessions. China Construction Bank rose 1.6 per cent to become the biggest gainer on the China Enterprises Index . But gains in other Chinese banks were relatively modest.

'Lower oil prices are supporting the market, but with investors still fretting over the repercussions of the mortgage crisis on the US economy and a slew of economic data expected over the next few days, the HSI will continue to struggle around the 21,000 level,' said Mr Ben Kwong, COO with KGI Asia.

Asia's largest wireless carrier, China Mobile , advanced 1.7 per cent after closing at its lowest level since September 2007 on Tuesday.

Mainboard turnover fell to HK$32.63 billion from HK$35.09 billion.

The China Enterprises Index of top locally listed Chinese firms gained 0.7 per cent.

SHANGHAI
Chinese stocks fell sharply on Wednesday, led by property shares and financials, as the possibility of an economic slowdown continued to worry investors.

The Shanghai Composite Index, which tumbled 3.43 per cent on Tuesday, dropped a further 2.65 per cent on Wednesday to close at 2,705.867 points, though it came well off an intra-day low of 2,656.613.

Turnover in Shanghai A shares shrank to a modest 60.2 billion yuan (S$11.9 billion) from Tuesday's 75.0 billion yuan.

Official sources told Reuters on Tuesday that second-quarter gross domestic product data, to be released on Thursday, showed economic growth slowing slightly from the first quarter.

The government has been trying to prevent the economy from overheating, so a moderate slowdown could permit some easing of economic policy. But with the outlook for global growth shaky, investors worry that any slowdown in China could become serious.

'Investors are short-sighted in a bearish market', said Mr Chen Ge, fund manager at Fullgoal Fund Management. 'With no monetary loosening in sight, they are losing patience and selling stocks in a panic again'.

TOKYO
Japan's Nikkei stock average edged up 0.05 per cent on Wednesday as worries about the US economy weighed on automakers, while banks rose on investor hopes for a rebound after US securities regulators moved to limit certain types of short selling in major financial firms.

Mitsubishi and other trading firms were hit a day after oil prices tumbled more than US$6 a barrel, but chip-related shares buoyed the market after Intel posted stronger than expected results.

The benchmark Nikkei gained 6.24 points to 12,760.80, its first positive day this week. The broader Topix was down 0.3 per cent at 1,249.28. -- REUTERS, AFP, BERNAMA