Dealers waited in the wings before the next full week of trading, leading to light turnover and causing stocks to swing more rapidly.

By the end of the day Tokyo was up 1.28 per cent, Sydney rose 0.9 per cent and Seoul 0.6 per cent, while Taiwan leapt 3.91 per cent. However, Hong Kong was down 0.7 per cent, Shanghai 0.95 per cent and Singapore 0.56 per cent.

Despite Japan's Nikkei finishing the day up, it brought to a close a dreadful 12 months that saw the index lose more than 40 per cent of its value, its worst per centage point drop ever.

'It was a year beyond our imagination,' said Kazuhiro Takahashi, an analyst at Daiwa Securities SMBC.

The market repeatedly posted some of its biggest ever rises and falls and in October plunged to a 26-year low.

Tokyo Stock Exchange president Atsushi Saito told the ceremony marking the close of the year's trading: 'In the long history of mankind, there have been many harsh economic slumps but they have been overcome.

'We want to make the next year a year in which we will move towards the future in a constructive manner.'

Seoul's KOSPI was also up on the day but has also lost more than 40 per cent over the year. And there was more bad news as data showed South Korea's industrial production declined 14.1 per cent year-on-year, almost twice the level forecast by economists.

'This is a shocking number and today's data shows that the economy is deteriorating faster than expected,' Bae Sung-Young, an analyst at Hyundai Securities, told Dow Jones Newswires.

Sydney was boosted by commodities stocks as fighting in the Middle East between Israel and Hamas led oil prices back above 40 dollars Shanghai was lower, despite an announcement by China Eastern Airlines that a previously agreed government bailout would be more than doubled to over a billion-dollars.

Bangkok finished 0.73 per cent higher in its final session before New Year but is still more than 47 per cent lower than its level at the end of 2007.

Manila was closed for a public holiday. -- AFP

SHANGHAI
Chinese shares closed down 0.95 per cent on Tuesday as China Eastern Airlines shares fell despite the announcement of an expanded government bailout plan, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, ended down 17.57 points at 1,832.91 on turnover of 37.9 billion yuan (S$7.9 billion).

The Shanghai A-share index lost 18.51 points, or 0.95 per cent, to 1,924.55 on turnover of 37.8 billion yuan, while the Shenzhen A-share index was down 5.10 points, or 0.86 per cent, at 589.21 on turnover of 20.7 billion yuan.

HONG KONG
Hong Kong share prices closed 0.7 per cent lower on Tuesday, tracking the Shanghai bourse lower, dealers said.

The benchmark Hang Seng Index closed down 92.98 points at 14,235.50.

Turnover was light at HK$26.38 billion (S$4.87 billion).

Energy stocks bucked the trend as tensions in the Middle East heightened.

Oil producer CNOOC jumped 4.35 per cent.

The market will be closed after morning trading on Wednesday to prepare for the new year holiday.

TOKYO
Japanese share prices closed 1.28 per cent up.

The Nikkei gained 112.39 points to close at 8.859.56 after a half day of trading.

The finish means the index was down 42.12 per cent - or 6,448.22 points - from 2007, marking the worst annual percentage fall since it was established in 1949, as the global economic crisis hit hard.

The stock market reopens January 5.

In terms of points, the Nikkei suffered a steeper fall in 1990 with the end of the bubble economy, shedding 15,067.16 points or 38.71 per cent of its value.

In 2008, the auto sector was hardest hit, with all of Japan's carmakers drastically cutting their earnings forecasts due to falling demand in the United States and Europe, coupled with a soaring yen.

Shares in auto leader Toyota Motor Corp. lost half of their value in the course of the year.

The broader Topix index of all first-section shares ended the year down 41.77 per cent at 859.24. For the final session of 2008, it rose 4.47 points, or 0.52 per cent.

KUALA LUMPUR
Malaysian shares closed 1.6 per cent higher on Tuesday due to investors buying into index-linked stock, dealers said.

The Kuala Lumpur Composite Index gained 14.28 points to close at 881.63. -- AFP, AP