Upside move for share prices in Singapore and other Asian stock markets were capped recently on speculation that China may raise interest rates soon to cool the economy. Nikkei index retreated after Sony Corp's mobile-phone unit reported its first profit decline in two years. Sony dropped the most in a month after its venture with Sweden's Ericsson AB said third-quarter profit fell 10%.

Stock prices in China and Hong Kong fell as China, already the world's fastest-growing economy, reported a trade surplus that exceeded economists' forecasts.

"Whatever happens in China does have a big impact," Andrew Sullivan, head of Asian sales trading at Daiwa Securities SMBC Co. said today by telephone from Hong Kong.

Fast Retailing Co., Asia's biggest clothing retailer, slid after missing its full-year profit forecast. Nikon Corp. fell after receiving a ``sell'' recommendation at Goldman, Sachs & Co.

The Morgan Stanley Capital International Asia Pacific Index dropped 1.2 percent to 167.85 at 2 p.m. in Tokyo, its biggest decline since Sept. 18. All of the measure's 10 industry groups fell. China's CSI 300 Index dropped 3 percent, while Hong Kong's Hang Seng Index slumped 2.1 percent from a high yesterday.

China's trade surplus rose 56 percent in September to $23.9 billion, the country's customs bureau said today, adding pressure for higher borrowing costs to help prevent inflows of export cash from stoking inflation. The surplus beat the $21.6 billion median estimate of economists in a Bloomberg News survey.

Elsewhere, Japan's Nikkei 225 Stock Average lost 0.8 percent, while South Korea's Kospi index dropped 1.4 percent. All Asian markets fell, except New Zealand. Bourses in Indonesia and the Philippines are closed today for holidays.