SINGAPORE Asia stock investors hit the sell button in nervous anticipation of Wall Street's reopening on Monday after last week's attacks, with the Nikkei notching another 17-year low and even China's insulated bourses diving.

According to the Reuters, Leading the declines were airline and insurance stocks, two sectors at the front lines of immediate business losses, while defense and oil stocks were snapped up.

Only Pakistan and Taiwan were left out of the action, as authorities in Afghanistan's neighbor shut down markets for three days from Monday and typhoon Nari forced a closure in all Taiwan's financial markets.

U.S. stock markets reopen on Monday at the regular time of 9:30 a.m. edt (1330 GMT), following successful weekend tests of the world's biggest stock market, including critical tests of connections from the exchange floor to brokerage firms.

Nearly $43 billion worth of stocks are traded each day on the New York Stock Exchange, which has been shut since last Tuesday's plane attacks on the World Trade Center and the Pentagon.

Monday's drop in Asian bourses mean that many of the key markets, including Hong Kong, the second biggest by market capitalization, have made double-digit losses since the attacks, which occurred at the start of the U.S. Trading Day on Tuesday.

***** Wall St. Hard to Call ******

U.S. stock investors have had four days to mull the events that have killed thousands, including many in the financial industry. Expectations the U.S. will retaliate, with possible hits on Afghanistan, where prime suspect, Osama bin Laden, is believed to be hiding, are putting markets on edge.

During previous traumatic events including the 1993 bombing of the World Trade Center and the Pearl Harbor attack, the Dow Jones industrial average has fallen initially, then gone up, on average, 1.9 percent the day after.

But there's been talk about a "patriotic rally" boosting Wall Street as companies and investors send a message they are undeterred by the terror attacks. Companies like Cisco systems have announced share buybacks.

Asia offered few clues for the U.S. opening, with NASDAQ futures contracts and the seven NASDAQ stocks traded in Hong Kong suspended. Instinet, which operates the biggest U.S. alternative stock trading system, will reopen at 1200 GMT with NASDAQ stocks and at 1330 GMT with NYSE stocks.

****** Softening Blow *******

But already, there were signs Asia was trying to soften any blows from Wall Street's reawakening, with South Korea's Finance Ministry saying on Monday it was preparing to limit daily share price moves in an attempt to cope with increasing volatility.

The move came after the benchmark Korea Composite Stock Price Index (KOSPI) fell more than 12 percent last Wednesday, the biggest daily percentage drop since records began in 1988.

"We are preparing to change our electronic systems to limit shares' daily rise or fall to around 7.5 percent from the current 15 percent," said Byeon Yang-Ho, director general of policy coordination division at the Ministry of Finance and Economy.

The main Korean index stood three percent lower at 4766.79 at 0436 GMT on Monday.

***** No WTO Relief for China ******

Japan, Asia's biggest market, saw its benchmark Nikkei average end the morning down 4.88 percent at 9,520.69, after falling as low as 9,447.76, its lowest since December 1983.

On top of the U.S. impact, Japan is grappling with a mountain of bad loans at its bank exacerbated by the demise of its fourth largest retailer Mycal which owes nearly $12 billion.

Even China's successful end to 15 years of talks to get into the World Trade Organisation failed to offset the U.S. negatives.

China shares fell for a fourth straight day on Monday, with the Shanghai B Share Index down 4.89 percent at 0437 GMT while Shenzhen B Shares were 6.14 percent lower.

B shares are the only class open to foreigners.

China B shares fell about 10 percent last week in a three-day slide. China's stock markets are normally closely tied to domestic conditions and therefore relatively insulated.

**** Cathay Heads HK Drop *******

Elsewhere in greater China, the benchmark Hang Seng Index dropped three percent by midday, with a 15 percent fall in flagship carrier Cathay Pacific Airways leading the way.

Airline woes of a domestic nature also featured in Australia and New Zealand's stock markets. The closure of Australia's second biggest carrier Ansett Australia, which is owned by air New Zealand, threatens 16,000 jobs and will strike the economies of both countries.

The benchmark S&P/ASX 200 Index sank 4.17 percent to 2,971.6 at 0440 GMT. QBE insurance warned the costs of the attacks will substantially cut its profits. Its stock skidded 38 percent to a$5.70 before recouping slightly to a$5.95.

The benchmark NZSE-40 capital index dropped nearly five percent.