HONG KONG - ASIAN stock markets turned in a mixed performance on Friday, but most recoiled from their lows despite a grim profit forecast from Toyota and sluggish US economic data.

European markets opened higher. Many of Asia's bourses showed surprising resilience - notably in Hong Kong, South Korea and Singapore - given the overnight drop on Wall Street, as lower-priced shares attracted buyers and lending markets showed more signs of mending.

'The expectation was to open much lower following the trouncing in the US,' said Mr Benjamin Collett, head of hedge fund sales trading Daiwa Securities SMBC in Hong Kong.

Hong Kong's Hang Seng index, down over 3 per cent early in the session, came back to end 3.3 per cent higher at 14,243.43.

Analysts pointed to an interest rate cut by leading bank HSBC Holdings - the result of recent softening in interbank rates amid persistent liquidity injections from central bankers - as a major catalyst.

South Korea's main stock index rebounded from a 4.9 per cent fall to close 3.9 per cent higher after the country's central bank cut interest rates by a quarter of a point - the third cut in less than a month - in a bid to boost an economy hammered by the global financial crisis.

The move followed interest rate cuts by the European Central Bank and the Bank of England overnight.

In Tokyo, the Nikkei 225 stock average pared its early 7 per cent loss to close down 316.14 points, or 3.6 per cent, to 8,583.

Investor sentiment took a hit after Japan's top automaker Toyota slashed its annual forecast to a third of what it was a year ago. Its shares plunged 9.2 per cent.

Early in Europe, benchmarks in Germany, France and Britain were up 1 per cent or more in early trading.

In New York on Thursday, Wall Street's stock indexes plunged more than 4 per cent on widespread anxiety about the economy after computer gear maker Cisco Systems warned of easing demand and retailers reported weak sales for October.

A jump in unemployment benefits aggravated concerns.

'We're seeing data every day that looks really bad', said Ms Nicole Sze, Singapore-based investment analyst at Bank Julius Baer, which manages about US$300 billion (S$448 billion) in assets. 'The question is, has all the bad news been factored in? That's what investors are asking themselves.'

Markets were likely to see more volatility as along as bad news forced investors to readjust their expectations about the scope of a recession and its impact on company profits, analysts said.

Weakening prices for metals and oil pressured Australia's S&P/ASX 200 index, down 2.4 per cent, as resource giants like BHP Billiton slumped.

Singapore's index gained 2.43 per cent, recovering from steep early losses trigged in part by worse-than-expected quarterly results from DBS Group Holdings.

The Singapore-based bank, South-east Asia's largest, also said it would cut some 900 jobs.

In Japan, Toyota Motor shares sank to 3,460 yen after the company on Thursday afternoon cut its net profit forecast for the fiscal year through March 2009 to 550 billion yen (S$8.2 billion).

That's half of its earlier projection of 1.25 trillion yen, and about a third of the previous year's profit of 1.72 trillion yen. If that projection holds, it would be the smallest annual profit in eight years.

Japan's leading automaker blamed a contracting US auto market, strong yen and higher materials prices. Executive Vice President Mitsuo Kinoshita went so far as to call it 'an unprecedented situation.'

In Europe on Thursday, the Bank of England slashed its key interest rate by 1.5 percentage points to its lowest in more than 50 years in a dramatic bid to cushion its economy, while the European Central Bank, which sets rate for the 15-nation zone that uses the euro, settled for a more conservative half-point trim.

Overnight, the Dow Jones industrial average fell 443.48, or 4.85 per cent. The losses combined with another decline Wednesday represent the Dow's worst two-day percentage decline since the October 1987 crash.

US stock index futures were up, suggesting Wall Street would rebound on Friday morning. Dow futures were up 167, or 1.9 per cent, to 8,868, while S&P futures were up 20.9, or 2.3 per cent, to 925.5.

Oil prices rebounded modestly after plummeting overnight, with a barrel of light, sweet crude for December delivery up US$1.03 to US$61.80 in Asian trade. The contract fell 7 per cent to settle at US$60.77 overnight.

In currencies, the dollar was trading at 97.34 yen from 97.30 late Thursday in New York. The euro rose to US$1.2722 from US$1.2681 the day before.

In Hong Kong, the interbank lending rate, known as Hibor, for three-month loans ratcheted down to 2.24 per cent from 2.44.

KUALA LUMPUR
Malaysian share prices closed 0.2 per cent lower on Friday following two straight days of heavy losses on Wall Street but late buying in index heavyweights helped cushion the market, dealers said.

The Kuala Lumpur Composite Index lost 2.00 points to close at 893.95.

HONG KONG
Hong Kong share prices closed 3.3 per cent higher on Friday, reversing sharp opening losses as investors hoped Beijing would unveil measures to boost its market, dealers said.

The benchmark Hang Seng Index was up 453.39 points to 14,243.43. Turnover was 48.80 billion Hong Kong dollars (S$9.35 billion).

SHANGHAI
Chinese share prices closed up 1.75 per cent on Friday as investors awaited new government economic measures following the latest round of rate cuts from overseas central banks, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed up 29.99 points to 1,747.71 on turnover of 28.6 billion yuan (S$6.3 billion).

The Shanghai A-share index added 31.51 points, or 1.75 per cent, to 1,836.04 on turnover of 28.5 billion yuan, while the Shenzhen A-share index rose 4.55 points, or 0.93 per cent, to 491.10 on turnover of 11.5 billion yuan.

TOKYO
Japan's Nikkei stock index ended down 3.55 per cent on Friday, hit by fears of a deep global recession and a profit warning from Toyota Motor.

The benchmark fell 316.14 points to 8,583.00. -- AFP, THOMSON REUTERS, BERNAMA