After fluctuating in the morning, markets trended down later in the session as investors awaited closely watched non-farm payrolls data, due out later in the US, that's expected to reveal massive job losses as the global downturn leads companies to lay off workers and curb hiring.

Economists predict the American economy shed 550,000 jobs or more, with the unemployment rate jumping from 6.7 per cent in November to 7 per cent in December, which would be the highest in more than 15 years.

Dismal corporate news out of Asia also weighed on investors.

In Japan, electronics component maker TDK Corp. said late on Thursday it would cut 8,000 workers and post its biggest net less ever this fiscal year. South Korean automaker Ssangyong Motor announced on Friday it applied for protection from creditors to buy time to restructure, calling the move an 'unavoidable choice' as it struggles with a liquidity crisis.

'Basically there's not much direction,' said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. 'People still fear the market will go down. All the economic figures show the global economy is in a mess, it's not going to climb out anytime soon.'

Tokyo's Nikkei 225 stock average moved in and out of the green, trading 39.62 points lower, or 0.5 per cent, at 8,836.80 by the close. Hong Kong's Hang Seng Index lost 38.47 points, or 0.3 per cent, to 14,377.44, after rising earlier in the session amid what analysts said was speculation about central government aid for the power sector.

In South Korea, the Kospi shed 2.1 per cent even as the country's central bank cut its key interest rate for the fifth time in just three months to help shore up the country's sagging economy.

Benchmarks in India, Taiwan and Singapore sank, while those in Shanghai and Australia advanced.

Overnight in New York, Wall Street closed mixed after lawmakers and Citigroup worked out a deal that could support the battered housing sector by limiting the number of mortgage foreclosures.

Sentiment was hurt after Wal-Mart Stores Inc. issued a profit warning and reported dismal sales for December, heightening fears that consumers are faring even worse than thought.

The Dow ended down 27.24, or 0.31 per cent, at 8,742.46 after being down as much as 119, but broader stock indicators climbed. The Standard & Poor's 500 index rose 3.08, or 0.34 per cent.

US futures pointed to losses on Wall Street ahead of the government jobs report. Dow futures were down 31 points, or 0.4 per cent, at 8,665, and S&P500 futures fell 3.1 points, or 0.4 per cent, to 902.90.

Oil prices recovered moderately, with light, sweet crude for February delivery up 24 cents to US$41.94 (S$62) a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.

The contract overnight fell 93 cents to settle at US$41.70.

In currencies, the dollar slipped to 91.20 yen, down from 91.34 yen, while the euro fell to $1.3654 from $1.3699.

TOKYOJapanese share prices closed down 0.45 per cent on Friday, pressured by a stronger yen and investor caution ahead of a US jobs report that is expect to show a fresh wave of layoffs.

The benchmark Nikkei-225 index dropped 39.62 points to 8,836.80, losing ground for a second straight day.

The broader Topix index of all first-section shares fell 5.87 points, or 0.68 per cent, to 855.02.

KUALA LUMPUR
Malaysian shares closed 0.9 per cent higher on Friday due to bargain-hunting by local investors, dealers said.

The Kuala Lumpur Composite Index gained 8.55 points to close at 919.07.

Turnover was at 415.43 million shares valued at 605.93 million ringgit (S$256 million), while gainers led decliners 291 to 180.

'Intermittent profit taking by short-term investors capped the market's rise,' one dealer told Dow Jones Newswires.

'The decline in crude oil prices was an additional trigger. There may be more upside to this market in the near term.'

Among gainers, Eastern Oriental added 22.1 per cent to 69 sen, Gamuda gained 4.7 per cent to 2.0 ringgit and Bumiputra-Commerce rose 2.2 per cent at 7.0.

Axis REIT slipped 4.2 per cent to 1.15 ringgit and YTL Corp lost 1.4 per cent to 7.0.

SHANGHAI
Chinese shares rebounded on Friday as investors hunted bargains and power companies rose after a government capital injection into one electricity supplier.

The benchmark Shanghai Composite Index rose 1.4 per cent, or 26.68 points, to close at 1904.86. The Shenzhen Composite Index for China's smaller second market rose 2.2 per cent to 585.85.

Investors are looking forward to the inauguration of US President-elect Barack Obama, who has proposed a massive stimulus package for the US economy.

'With Obama's stimulus plan, everyone?s expecting the American economy to take off and trigger a comeback for China's exports and then the economy,' said Mr Huang Xiangbin, an analyst for Cinda Securities in Beijing.

HONG KONG
Hong Kong share prices closed 0.3 per cent lower on Friday, wiping out early gains as investors stayed away from the market after three days of falls, dealers said.

The benchmark Hang Seng Index closed down 38.47 points at 14,377.44. Turnover was light at 45.14 billion Hong Kong dollars (S$7.91 billion) .-- AFP, BERNAMA, AP