A RANGE of negative factors look set to influence trading on most Asian markets this week, along with continued uncertainty in the aftermath of the Mexican financial crisis. A report about the declining health of Chinese leader Deng Xiaoping rocked Hong Kong's Hang Seng index on Friday, and continued weakness on the Hong Kong market could affect other markets throughout the region, some brokers said. The Tokyo market could be in for a bumpy ride if foreign investors start selling heavily and domestic investors become scared. Thai stocks are expected to rebound this week but concerns about a possible rise in US short-term interest rates will contine to hurt sentiment. The Seoul stock market is expected to lose further momentum, depressed by worries about a lack of liquidity. AUSTRALIA DEALERS predict a better run for the Australian share market saying more buyers have been evident during recent sessions. 'The last few sessions have indicated a definite increase in investor confidence following the lacklustre start to the new year. I see a slightly firmer market,' said Jim Tredenick, a dealer at Brisbane broker, Nevitts. The All Ordinaries index closed a lacklustre session on Friday at 1,858.8, down 3.1 points on the day, and a total of 8.9 points, or 0.48 per cent, down on the week. Average daily turnover during the week totalled 141.3 million shares worth A$330.8 million compared with the previous week's 114.6 million shares worth A$295.7 million. BANGKOK STOCKS are expected to rebound in the coming week but concerns about a possible rise in US short-term interest rates will hurt sentiment, brokers said. 'If foreign selling trails off on Monday and Wall Street does not fall much, Thai stocks should rebound because local institutional investors are buying,' said a broker from International Trust. The index closed 24.41 points lower at 1,248.59 on Friday. BOMBAY THE 30-share index of the Bombay Stock Exchange reversed a two-week downtrend on Friday and rose for the first time this year to gain 26.93 points and close at 3,601.83. Brokers said the increased volume would be good news for the domestic market. JAKARTA SHARE prices tumbled at Friday's close in nervous trading following heavy selling pressure from overseas players across the board, brokers said. The Composite Index fell 10.813 points, closing at 441.873. The fall was sparked by offshore attacks on the rupiah, which apparently spread through the stock market. KUALA LUMPUR SHARE prices are expected to remain under pressure from foreign selling amid fears of fallout from the Mexican crisis, brokers said. 'I think US funds in particular will continue to sell to raise cash after suffering huge losses from the Mexican turmoil,' said an institutional dealer with a bank-backed brokerage. 'We may not see fresh inflow of funds for a while.' The Kuala Lumpur Stock Exchange's Composite Index closed on Friday at 898.50, down from 955.43 previously. The index was seen heading for its next major support level of 850, analysts said. MANILA THE exchange will take its cue from Wall Street and other regional markets after it fell 5.66 per cent on Friday, brokers said. 'It's quite soft. The market will open weak and then we may have a technical rally mid-week. Fund managers are a bit shaky and cautious after what happened in Mexico,' said Patrick Garcia, vice-president of L M Garcia and Associates. Noel Reyes of Dharmala Securities said the market might go as low as 2,450 points during the coming week. The 30-share index closed on Friday at 2,482.04, down 274.18 points from the previous week's close of 2,756.22. The average daily volume last week rose 26.5 per cent to 3.89 billion shares while average daily value jumped 61.8 per cent to 1.48 billion pesos. SEOUL THE stock market is expected to lose further momentum, depressed by worries about a lack of liquidity, brokers said. 'Liquidity fears and the shock on world stock markets from the plunging value of the Mexican peso will keep depressing buying sentiment,' said Kim Heung-shik of Hyundai Securities. Brokers said the leading index was expected to fall to the 940-level before a slight technical rebound. The composite index closed at 976.59 on Friday, just off from the previous Friday's 975.32. SINGAPORE BROKERS expect the share market to continue drifting down as foreign funds make their exit from regional markets. 'Foreign institutions are still in a selling mood,' one Baring Securities dealer said, adding that funds were raising cash in anticipation of redemptions. The Singapore stock market, together with other emerging markets, has been hit by funds unloading equities for cash and other fixed-income securities. The 30-share Straits Times Industrials index closed the week at 2,080.73 against 2,209.37 a week earlier. Analysts say investors are particularly sensitive to foreign events like the Mexican peso crisis because of a lack of strong domestic leads. TAIPEI STOCKS are expected to test lower levels amid bearish sentiment in a weak market, brokers said. 'Before all negative factors are removed, the index will continue to test its lower levels,' said Allan Huang of National Securities. The negative factors included continued institutional selling, a new system for payment procedures for stocks from February 4 and recent reports that the health of Chinese paramount leader Deng Xiaoping is declining, brokers said. On Friday the index ended at 6,582.40, down from 6,919.31 a week earlier. Average daily turnover declined to 1.35 billion shares this week from 1.91 billion issues the previous week. They were worth an average NT$51 billion, down 35 per cent from NT$78.9 billion. TOKYO THE stock market could be in for a bumpy ride if foreign investors start selling heavily and domestic investors become scared off, brokers said. 'The key to the market is how foreigners trade. I don't think overseas factors will have much impact on the market, although investors are concerned with Hong Kong's weakness,' said Kazumi Shimokawa, of New Japan Securities. But Robert Owen, broker at Schroders, said any weakness in overseas markets would benefit Japan as it would be regarded as a safe investment haven. On Friday, the Nikkei share average ended at 19,331.17, down 0.97 per cent on the week. 'At present, investors feel uncertain in general and the number of market participants is limited,' said the senior equity manager for the giant Sumitomo Life Insurance Co Kazuaki Sano. He said corporations would continue selling stocks to dress up their accounts toward the end of the fiscal year in March, adding that both domestic and foreign investors remain cautious. WELLINGTON SHARES ended last week on a sour note with the main index losing ground in the face of uncertainty about overseas markets and a weaker domestic New Zealand bond market. The NZSE-40 capital index closed on Friday at 1,922.72.