US stock markets closed lower Friday after a government survey showed American consumers had pulled in their belts a few notches last month amid lingering economic uncertainty.

A profit warning from the giant retailer JC Penney also depressed US investor optimism and this impacted on sentiment in Asia, where bargain hunters had recently been scouring the markets for good buys.

SHANGHAI
Chinese share prices closed 3 per cent lower on Monday as speculation about the introduction of market-friendly policies by the government receded, dealers said.

They said rumours about a cut in stamp duty and other potential policies prompted a surge in the stock market last Friday, but those hopes faded after confirmation of the speculation failed to materialise over the weekend.

The benchmark Shanghai Composite Index, which covers A and B shares, closed down 107.43 points at 3,472.71 on turnover of 66.8 billion yuan (S$13.3 billion).

The Shanghai A-share Index shed 112.88 points or 3.01 per cent at 3,643.24 on turnover of 66.7 billion yuan.

The Shenzhen A-share Index was down 43.85 points or 3.66 per cent to 1,153.90 on turnover of 30.3 billion yuan.

KUALA LUMPUR
Malaysian share prices closed 0.9 per cent lower on Monday due to profit-taking as investors cashed in recent gains after Wall Street's fall last week, dealers said.

The Kuala Lumpur Composite Index (KLCI) finished down 10.89 points at 1,247.52.

HONG KONG
Hong Kong stocks fell 1.88 per cent on Monday to post their worst quarterly performance in more than six years, as investors took to the sidelines on lingering concerns about the global credit crunch.

The benchmark Hang Seng Index fell 436.75 points to close at 22,849.20 points on Monday.

It fell more than 6 per cent for the month of March and slid 18 per cent for the quarter.

The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, finished down 2.81 per cent at 12,083.30, ending the first quarter down more than 25 per cent and the month of March about 13 per cent lower.

TOKYO
The Nikkei fell 2.3 per cent on Monday as investors rushed to take profits and sold blue-chip shares such as Toyota Motor Corp.

The benchmark share average ended the quarter down 18.2 per cent, its worst quarterly performance since mid-2001. It lost 27.6 per cent in the fiscal year ending on Monday. Bank shares slid, with Mizuho Financial Group down 5.4 per cent, after US financial firms fell on concerns about potential dividend cuts.

The benchmark Nikkei finished down 2.3 per cent at 12,525.54 after earlier falling more than 3 per cent. The broader Topix was down 2.5 per cent at 1,212.96 after earlier also falling more than 3 per cent. -- AFP, REUTERS