Asian stocks close mostly down despite lower oil prices
Posted: 03 September 2008 1903 hrs

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HONG KONG - Asian shares closed mostly down Wednesday despite the fall in oil prices, as data showing slowing Australian expansion underscored concerns about the cooling global economy.

The Sydney bourse shed 1.1 per cent after official figures showed the resource-rich Australian economy expanded at a slower annual rate of 2.7 per cent in the second quarter.

Among other major markets, Hong Kong fell 2.2 per cent and Singapore shed nearly two per cent, while China and Taiwan also suffered notable falls.

But Japan, Asia's biggest market, ended 0.64 per cent higher despite lingering uncertainty following Prime Minister Yasuo Fukuda's abrupt resignation on Monday.

The Seoul bourse also rose, jumping 1.4 per cent as the International Monetary Fund dismissed fears of a second financial crisis in South Korea, saying the country's fundamentals were much stronger than in 1997.

Oil prices were trading at about 107 US dollars per barrel Wednesday following a recent slide, well down from record levels above 147 US dollars hit in July.

The lower cost of crude has curbed fears about high Asian inflation, but worries about the slowing global economy have been weighing on regional share prices.

Investors were also cautious ahead of upcoming US data, including Friday's key monthly jobs report. - AFP/ir