ASIAN markets are expected to remain on edge this week, with Australia and Manila worried about prospects for a US interest rate increase and Tokyo about domestic economic troubles. Expectations are more positive for Bangkok and Seoul, where shares should be buoyed by foreign bargain hunting. Prices should be mixed in other Asian markets. After a rough week, Wall Street will be looking forward to the Labour Day holiday tomorrow. Blue-chip stocks fell sharply on Friday after unexpectedly strong data reinforced fears that the Federal Reserve will raise interest rates to head off inflation as the economy continues to grow. The Dow Jones industrial average ended down 31.44 points at 5,616.21. For the week, the index lost 106.53 points, the most since May. AUSTRALIA THE Australian share market outlook is seen as mixed to weaker in the near term with the tone expected to be set by Wall Street as US bonds continue to suffer from rate-tightening fears. The benchmark All Ordinaries finished at 2,268.7, down 24.2 points over the week. With profit results driving individual stocks, the broader market suffered from a flow-on of Wall Street's weakness. 'People are very jittery on the outlook for bonds and they are keeping a close eye on them,' said Peter Struk, a dealer at Reynolds and Co.BANGKOK THE Stock Exchange of Thailand (SET) index is expected to rise on expectations of high liquidity in the money market and on bargain-hunting by foreign investors after stock price drops, brokers said. 'Liquidity in the system is expected to be high. Foreigners are also expected to continue buying from this week,' said Thanadech Mahapokai of Book Club Finance and Securities. The SET index closed at 1,102.32 on Friday, compared with 1,106.73 last Friday. BOMBAY INDIAN stocks will be guided by what relief the government plans to give to industry and small investors, brokers say. Finance Minister P. Chidambaram will address parliament tomorrow about the proposed 1996/97 (April-March) budget, beginning a week-long debate on the finance bill. The market expects changes to a controversial tax proposal. The expectations drove the 30-share Bombay Stock Exchange index up 21 points, or 0.60 per cent, to close at 3,514.61 on Friday. JAKARTA SHARE prices are likely to be mixed in the coming week as many brokers are waiting for positive news to stimulate fresh buying. 'Many operators are likely to re-enter the market as prevailing share prices are quite cheap. They are just waiting for better market sentiment,' Pungky Kuntjaraningrat, research analyst for Pentasena Securities, said. Brokers said the on-going court case involving the Indonesian Democratic Party could also keep some foreign investors on the sidelines. On Friday the Jakarta composite index closed down 2.42 points, or 0.44 per cent, to close at 547.61 points, against last week's close of 549.21 points. KUALA LUMPUR NARROW-RANGED, easier trading seen in blue chips should continue while small-capitalisation stocks, which shot to record levels last week, may take a breather this week, dealers say. The Kuala Lumpur Stock Exchange Composite Index of Malaysia's 100 biggest firms ended on Friday at 1,118.57, up 8.08 points, down 0.83 points from the previous week. The second board index closed at a record of 541.75 on Wednesday, its third high in a row this week. MANILA GOOD news on first-half gross national product (GNP) and the August inflation rate could help the Manila market break out of its tight range, analysts say. The GNP statistics are scheduled for release tomorrow and the inflation statistics on Thursday. Fears of an increase in US interest rates could dampen the market, Ramon Lucas of Rashid Hussain Securities said. Over the week, the main index dropped 5.75 points to 3,220.71 points after investors cashed in on recent gains. SEOUL SOUTH Korean stocks were mixed yesterday as gains in small company stocks offset declines in blue-chip shares amid concern about an economic slowdown, analysts said. Shares are expected to climb early this week on bargain hunting by domestic institutions and foreign investors. Small shares will benefit from a government plan to allow brokers to set up margin accounts for investment in the so-called secondary group. The benchmark Korea Composite Stock Price Index fell 1.38 points yesterday, or 0.3 per cent, to 781.49. Trading was 13.8 million shares, compared with the three-month daily average of 20 million shares. SINGAPORE DEALERS say trading in Singapore shares should perform better on a technical rebound after a week of dull trade. A strong Malaysian National Day rally might push up the Malaysian over-the-counter stocks traded in Singapore. Malaysia celebrated its national day yesterday. On Friday, the key Straits Times Industrials Index was 2,153.54, down 27.98 points from last Friday's 2,181.52. TAIPEI SHARE prices in Taiwan closed 0.2 per cent higher yesterday amid weak buying sentiments despite greater participation by foreign institutions. The weighted index ended at 6,324.60 points, compared with 6,190.56 a week earlier. A 6,250-6,450 range was seen for this week. Falling stocks outnumbered those rising 196 to 140 with 107 unchanged. Share prices are expected to firm this week as Morgan Stanley is scheduled to include Taiwan in its global indices. TOKYO THE Tokyo stock market's key Nikkei average is seen likely to extend losses towards the key 20,000 level following its tumble by nearly 2 per cent on Friday. 'The investment environment is bad,' said Keiji Arai, a strategist at Sanyo Securities Co. Brokers said that, given the number of negative factors, the Nikkei average could breach the 20,000 level at any time. On Friday the 225-share Nikkei average slid 386.26 points or 1.88 per cent to close at 20,166.90. WELLINGTON SHARES fell on Friday amid rising bond yields, which diminish the appeal of yields available from equities, particularly stocks such as Telecom Corp and Fletcher Challenge's forestry shares, fund managers and traders said. The benchmark New Zealand Top 40 share index fell 10.77 points, or 0.5 per cent, to 2228.77 points. Telecom alone accounted for more than four points of the index's decline. Within the index, decliners outnumbered advancers by 23 to 11.