EERIE legends from the ancient Japanese city of Edo; a Briton in 18th century tall hat and boots in London's Camden Town; such were the inspirations behind the fashion show recently staged by graduates of the Hongkong Polytechnic's Swire School of Design. Strutting the catwalk of Grand Hyatt's ballroom were models displaying a galaxy of colourful and imaginative designs that both delighted and shocked an audience of over 500. Helen Chan creatively integrated swatch watches into her all-red collection in the form of dress suspenders among other things, which won her the Swatch Watches Award. The vogue of the 60's was given a 90's look by Herbert Chan, which won him the Windsor Education Foundation Award for the most promising young designers. Another winner was Andy Ho who dressed his pale models in Japanese style, with wrinkled and worn fabric marked by bold carp prints and shaggy bags. But the most coveted prize was the Lane Crawford Trophy for the most creative collection. It went to 22-year-old Odi O Wai-man who hand-painted her fabric. O's white long layered outfits were characterised by equally long flowing strand-like accessories that decorated the necks and foreheads of her models, giving them an air of grace and sophistication. She got her inspiration from veteran Chinese ink painter Qi Bai Shi. ''I love Qi's natural and elegant painting style, as well as his graphic sense and clear-cut brush strokes.'' Mrs Mason Chan, Lane Crawford's Marketing Manager, who presented the prize, said: ''There is a true element of design running through the collection which gives a strong identification to the designer. She has also shown herself very aware of current trends.'' Behind such a rich display of talent was Ms Janice Stevens, the school's head of fashion, who also wrote the present degree programme. The British instructor found her students highly individual. ''They have a deep understanding of their own culture which they can market in the West.''