``The market had expected a 50 basis point reduction in prime rates, so I think the market will show a bit of disappointment next Monday and interbank rates may move up a little bit,'' said Kevin Chan, economist at Nomura International.

``But within one week or two, the market will again speculate on another 25 basis point rate reduction,'' he said.

Concern over the Japanese yen's outlook against the dollar depressed blue-chip shares in Tokyo, pushing the benchmark Nikkei average down 1.07 percent to 16,391.81 by the close.

``Investors are tending to reduce holdings in high-priced blue-chips like Sony Corp as the currency trends are expected to hurt their earnings,'' said Yoshio Inamura, a manager at Tokyo-Mitsubishi Asset Management.

Traders said most blue-chip firms calculated their earnings forecasts at around 120 yen, and fears that their earnings would be revised down hit their shares. The dollar stood at 118.35/38 yen in late Tokyo trade.

Singapore's key Straits Times Index barreled on to finish the week at a nine-month high of 1,545.18, up 1.80 percent from Thursday and supported by strength in bank shares. Markets in Australia and New Zealand lost ground as investors took profits after recent rises, but some traders predicted further strength next week. ``Today is a just a very small blip on the screen and the tone going into next week looks pretty positive,'' said Alan Wills, a broker at Cavill White in New Zealand.

Australia's key All Ordinaries index ended down 1.42 percent at 2,856.3 after finishing at a record high Thursday, while New Zealand's Capital Index lost 0.48 percent to end at 2,160.29. Thailand's benchmark SET index finished up 0.43 percent at 399.43, Manila's composite index closed up 0.27 percent at 2,140.64, Seoul lost 1.77 percent to 626.33 and Taipei ended up 0.27 percent at 6,421.75. Thursday's star performer, Jakarta, was Friday's biggest loser, slumping 4.03 percent to 439.49 as investors cashed in profits following a furious seven percent leap Thursday.

``The market swings from extreme to extreme. It concerns me because this is too speculative,'' said Arie Supangat, a dealer with Tifa Securities in Jakarta. Buying by local and foreign institutional funds lifted Malaysia's KLSE Composite Index 0.99 percent to 591.70 by the close. Foreign fund buying helped shares in Bombay close up a provisional 2.92 percent to 3,395.38, dealers said.