Bearish sentiment prevails, Asian stocks end lower

Dow Jones, Hong Kong

Asian stock markets closed mostly lower Wednesday, weighed on by various factors including profit-taking, stock-specific concerns and a general feeling of uncertainty in relation to possible U.S. military retaliation over the Sept. 11 terrorist attacks.

"There are more reasons to keep selling stocks in Asia and elsewhere compared to reasons to start buying them," a Singapore- based regional investment strategist said.

Keeping sentiment bearish in Asian stock markets are an expected delay in any recovery in exports - the main driver of this region's growth in previous years - relatively low liquidity, weak corporate earnings, a prolonged economic slump, and rising unemployment.

The widely expected cut in U.S. interest rates overnight failed to boost Asian shares, which usually look to the U.S. for direction.

Song Seng Wun, a regional analyst at G.K. Goh Research Private Ltd., said the 50-basis-point cut in U.S. interest rates, the ninth so far this year, failed to lift Asian markets since it was merely a confirmation of what investors globally already knew: "that the U.S. economy is struggling along."

Japan and Indonesia were Asia's worst performing stock markets Wednesday.

The Nikkei 225 Average fell 2.1 percent to 9924.23 after investors took profits from gains accumulated over a four-day technical rally. Technology-related stocks were among the biggest decliners.

Indonesia's JSX Composite Index fell 1.5 percent to 371.488 mainly on concerns over the weaker rupiah and the government's decision to alter its planned privatization of PT Bank Central Asia.

Elsewhere in Asia, Hong Kong's Hang Seng Index fell 0.5 percent to 9897.14 from Friday after trading higher - and briefly above the key level of 10000 - for most of the session. Analysts said investors tend to cash in on gains in Hong Kong, fearful that an overall stock market recovery is far from being underway. Hong Kong's market was closed Monday and Tuesday for public holidays.

The Philippines, Taiwan, Singapore, Australia, Thailand and India also closed lower.

New Zealand bucked the regional trend.

Markets in China and South Korea have been closed since Monday on holidays.