HONG KONG. Aug 7: Nervous Aslan markets ended the week mostly lower Friday due to Eressure on the Hong Kong dol-ir and fears China might be forced to devalue its currency, reports AP.

In Hong Kong, the Hang Seng Index fell 235.95. or 3.3 per cent, to close at 7.018.41. its lowest level since Jan 24. 1995. The index closed Just 51 points shy of a five-year low. and a 58 Ker cent fall from its all-time igh of 16.673.27. reached exactly a year ago.

Brokers attributed the slump to mounting concerns about speculative attacks on the Hong Kong dollar and China's ability to resist devaluing the Chinese yuan.

If the yuan were devalued, it would pull the rug out from under the Hong Kong currency and trigger another wave of currency devaluations across the region.

The Hong Kong dollar is pegged at 7.80 to the US currency. In late trading, the Hong Kong dollar was quoted at 7.7500 to the dollar, barely changed from-late--Thureday’s

Hong Kong leader* Ttmg Chee ■ hwa reiterated Friday that the territory would defend the currency peg, saying it was a "fundamental policy" of the government.

Traders, who also had been awaiting details of Japanese Prime Minister Keizo Obuchi's policy speech in Tokyo, found little to affect the market. Obuchi reiterated that he would go ahead with tax cuts and new

spending to revive the region s largest economy.

In Japan, the Nikkei stock index rose in early trading, but ended the day 47.05 points lower at 15.289.17. its fifth consecutive loss.

Meanwhile, the dollar was quoted at 145.54 yen in late-af-ternoon trading, up 0.87 yen from late Thursday in Tokyo and above its New York rate of 144.32 yen overnight.

Malaysian shares also tumbled on fears of a possible devaluation of the Hong Kong dollar and Chinese yuan, coupled with market rumours over the possible resignation of finance minister Anwar Ibrahim, which he denied.

The Kuala Lumpur Stock Exchange s Composite Index closed at 364.05 points, down 10.73 points, or 2.9 per cent.

Philippine shares, already at a five-year low. closed down another 2.2 per cent, and the peso currency fell as well over tears that China might be forced to devalue.

The dollar averaged 42.916 pesos for the day. up from ■42.843 pesos on Thursday". It reached a day-high of 43.490 pesos, which was alsd'its closing level.

The 30-share Philippine Stock Exchange Index dropped 32.17 points to 1.448.72, adding to a 43.86-point decline on Thursday.

Thai stock prices continued their plunge to the lowest levels for over eleven years, pushed down by continued uncertainty over the future of the country's banks and weakness in the

baht, dealers said.

The Stock Exchange of Thailand index fell 4.53 points, or 1.8 per cent, to 247.54.

Asian markets were hit hard earlier in the week after the Dow Jones industrial average fell nearly 300 points on Tuesday. inciting fears that the US economy might begin slowing.

Elsewhere:

SINGAPORE: Shares closed sharply lower on renewed Jitters over the possibility of another round of regional currency falls and slides in other Asian stock markets. The Straits Times Industrials Index plunged 2.5 per cent, or 26.51 points, to 1.039.27.

JAKARTA: Share prices closed lower for the eighth consecutive session, with the main index falling to a six-week low. The Composite fell 10.220 points, or 2.4 per cent, to 423.613.

TAIPEI: Share prices closed higher on the back of overnight gains on US stock markets. "Hie market's key Weighted Stock Price Index rose 58.28 points, or 0.7 per cent, to 7.530.02.

WELLINGTON: New Zealand* share nrlces closed slightly higher The NZSE-40 Capital Index fell 12.37 points, or 0.6 per cent, to 2.031.18.

SYDNEY: Australian share prices closed narrowly lower in light trading. The All Ordinaries Index fell 3.4 points, or 0.1 per cent, to 2.599.0

SEOUL: Share prices closed slightly higher. The Korea Composite Stock Price Index rose 1.14 points, or 0.3 per cent, to 321.71.