More signs of economic weakness in the US inspired caution among investors, and softer prices for crude oil and metals in recent days pulled commodity stocks lower.

With some indexes up more than 50 per cent since March on expectations of an economic turnaround this year, markets have begun to falter amid worries stock prices have gotten too far ahead of economic fundamentals.

News that American industrial production fell by a bigger-than-expected 1.1 per cent last month gave investors in Asia, as in the US overnight, even more reason to hold back. It was the seventh straight monthly drop in industrial production and distracted traders from more upbeat figures on home construction, building permits and inflation.

US stock futures pointed to modest gains Wednesday on Wall Street. Dow futures rose 8 points, or 0.1 per cent, to 8,522 and S&P futures gained 2.1, or 0.2 per cent, to 909.90.

Oil prices hovered above US$70 (S$102) a barrel on Wednesday in Asia, with benchmark crude for July delivery up 35 cents to US$70.82. On Tuesday, the contract fell 15 cents. -- AP

TOKYO
Japanese shares rose 0.90 per cent on Wednesday as investors hunted for bargains after two days of losses.

The benchmark Nikkei-225 index gained 87.97 points to 9,840.85. The broader Topix index of all first section shares added 8.27 points or 0.90 per cent to 923.03.

SHANGHAI
Chinese shares closed 1.24 per cent higher on Wednesday as bargain hunters bought up property and banking stocks late in the session, dealers said.

The Shanghai Composite Index, which covers A and B shares, rose 34.45 points to 2,810.47.

The Shanghai A-share index rose 36.19 points, or 1.24 per cent, to close at 2,950.07, while the Shenzhen A-share index added 17.91 points, or 1.86 per cent, to 981.02.

HONG KONG
Hong Kong share prices closed 0.45 lower on Wednesday, as the investors struggled to find any clear direction, dealers said.

The benchmark Hang Seng Index closed down 80.90 points at 18,084.60.

Turnover was HK$74.48 billion.

KUALA LUMPUR
Malaysian shares closed down 0.30 per cent on Wednesday due to a lack of buying interest, dealers said.

The Kuala Lumpur Composite Index lost 3.22 points to 1,070.90. Gainers outnumbered losers 368 to 313.

'Risk aversion has returned as investors now start to question valuations and the strength of the perceived recovery in various economies,' a portfolio manager told Dow Jones Newswires.

'This correction may stretch a little further before we see some stability returning to the market,' he added.

Among losers, Genting lost 4.30 per cent to 5.55 ringgit while Tenaga was down 0.70 per cent to 7.70

On the upside, SP Setia rose 1.40 per cent to 4.44 ringgit and Maybank gained 0.90 per cent to 5.90. -- AFP