Tokyo  - Markets across the Asia-Pacific ended a roller-coaster week mixed on Friday with key bourses in Hong Kong and Tokyo down despite a much-anticipated rate cut by the Bank of Japan.

Asian markets had posted significant gains mid-week with daily surges of up to 10 per cent or even more after a rate cut in the United States, making up for similarly heavy losses at the beginning of the week.

The Bank of Japan on Friday cut its key short-term interest rate to 0.3 per cent from 0.5 per cent to help the world's second-largest economy weather the global financial crisis.

The bank's decision was "prompted by substantial changes in economic and financial conditions," Governor Masaaki Shirakawa said, adding that the global market turmoil was affecting Japan's corporate capital spending, exports and production.

Japan's central bank had maintained the overnight lending rate at 0.5 per cent since February last year when it raised the rate from 0.25 per cent. The bank ended a six-year policy of maintaining near-0-per-cent interest rates in July 2006.

Despite the rate cut, Japan's benchmark Nikkei Average index ended Friday's trading 5 per cent lower at 8,576.98. The yen remained higher against other currencies.

The broader Topix index of all first-section issues also fell 3.59 per cent to 867.12.

While the Japanese government welcomed the central bank's rate cut, economists said it would do little to prop up the economy.

"We can't expect the economy to lift up too much from the 0.2-point rate cut," said Takahide Kiuchi, senior economist at Nomura Securities Co.

Hong Kong stocks fell 2.52 per cent Friday at the end of one of the most turbulent weeks in the history of the Hang Seng Index.

The blue-chip index lost 361.18 points, slipping back below 14,000 to 13,968.67.

Analysts blamed the fall on profit-taking after three-consecutive days of gains, which had seen the index bounce back by 23 per cent after recording one of its biggest daily losses Monday.

China could also not escape losses at the end of the week with the Shanghai Composite index trading down 1.97 per cent at 1,729.79 while Shenzhen's SSE Component index lost 1.19 per cent to 5,839.33.

Indian equities soared more than 5 per cent on Friday on positive cues from global markets after rate cuts in the United States and Japan.

The 30-share Sensitive Index of the Bombay Stock Exchange was trading at 9,651.12 at midday, about 6.71 per cent above its previous close.

The broader 50-share Nifty of the National Stock Exchange also was up 5.35 per cent at 2,841.30.

Shares continued their rebound on the Seoul stock exchange, tracking overnight gains on the US market after suffering heavy losses earlier this week.

The benchmark Kospi index soared 2.6 per cent to close at 1,113.06 while the main index of the technology-heavy Kosdaq market rose 4.05 per cent to 308.03.

Taiwan stocks rose nearly 4 per cent on an overnight rally on Wall Street and in expectation of expanded Taiwan-China exchanges.

The Taiex index soared 3.99 per cent to close at 4,870.6.

Smaller markets in South-East Asia ended the week on a stronger note with the Jakarta Composite Index up 7.06 per cent at 1,256.70 and Philippine shares up 4.62 per cent as investors snapped up undervalued stocks.

The Philippine Stock Exchange's 30-share composite index gained 86.16 points to close at 1,951.09.

Analysts said investors could not resist stocks that have been grossly undervalued while some companies bought back their shares to enhance their value.

In Bangkok, the Stock Exchange of Thailand closed up 2.01 per cent at 416.53.

Australia and Singapore ended the week almost flat with Sydney's ASX 200 index up 0.42 per cent to 4,018 and Singapore's Straits Times Index down 0.43 per cent at
1,794.2.

New Zealand's NZX 50 was up 2.1 per cent at 2,820.86. (dpa)