Asian stocks close mostly higher in cautious trade

HONG KONG (AFP) - Asian stocks closed mostly higher on Monday in a cautious consolidation after central banks moved to bolster confidence in the financial markets following last week's rout.

Central banks from Japan to Australia and Europe to the United States injected liquidity into the system to fend of any credit crunch in response to the US subprime mortgage crisis.

Those mortgages, made out to risky borrowers, had underpinned a collapse in related hedge funds and sparked a massive global sell-off in equities which has continued since late July.

Carefully word statements have also been issued by central bankers over the past two trading days seeking to assuage investor concerns and on the day some confidence was seen returning to the markets.

However, anxieties were expected to continue until the full extent of subprime losses are known.

Philippine share prices closed 0.40 percent lower as investors took profits from a promising start amid continuing worries about the US subprime credit crisis.

Dealers said caution dominated sentiment as investors opted to await the outcome of the US Federal Reserve's move Friday to inject billions of dollars into the country's banking sector to calm the markets.

The composite index lost 14.93 points to 3,267.03. A total of 2.7 billion shares worth P3.7 billion ($81.16 million) were traded.