Asian markets weighed by US fiscal cliff

ASIAN markets fell in New Year's Eve-shortened trade as hopes that US lawmakers will reach a deal to avert the fiscal cliff faded just a day before a deadline.

However on Monday there was some bright news out of China, where a survey by HSBC showed manufacturing activity hit a 19-month high in December.

Hong Kong closed flat, edging down 9.67 points to 22,656.92, but it closed out the year 22.91 per cent higher.

Sydney closed 0.48 per cent lower, shedding 22.4 points to 4,648.9, although the index is up 14.60 per cent over the past 12 months.

Wellington was 0.35 per cent lower, shedding 14.39 points to 4,066.51, but adding 24.51 per cent for 2012.

In the afternoon Shanghai surged 1.12 per cent.

Tokyo, Seoul, Taipei, Jakarta, Bangkok and Manila were all closed for public holidays.

Despite the losses on Monday all the region's stock markets ended the year higher, with Bangkok the standout performer, surging almost 36 per cent, while Shanghai was the weakest, adding less than three per cent over the 12 months.

Republicans and Democrats on Capitol Hill ended Sunday without reaching a compromise over a deficit-cutting budget that would be less painful than the deep spending cuts and tax hikes due to take effect on Tuesday.

Leaders remained locked in talks that appeared to be making little headway, with each side blaming the other as analysts warned the measures could tip the economy into recession.

Senate Republican Minority Leader Mitch McConnell warned that, despite through-the-night talks, negotiators were still a long way from success, with Democrats not responding to a "good faith offer" from his party.

Senate Democratic Majority Leader Harry Reid agreed talks were at a standstill, adding: "There is still significant distance between the two sides, but negotiations continue."

If talks fail on Monday President Barack Obama has demanded a vote on his fallback plan that would preserve lower tax rates for families on less than $250,000 a year and extend unemployment insurance for two million people.

But Stan Shamu, a market strategist at IG in Sydney, said he expected some sort of plan to come out.

"No one knows how this will play out, but the most likely scenario is a patch-up deal to avoid a fiscal catastrophe in the New Year," he told Dow Jones Newswires.

On currency markets the euro rose to $US1.3207 from $US1.3217 in late US trade Friday, but the US dollar rose to 86.06 yen from 85.98 yen. The Japanese unit continued to be weighed by expectations the country's central bank will unveil fresh monetary easing measures next month.

The euro bought 113.67 yen from 113.62 yen.

News out of Beijing was better, however, with banking giant HSBC saying its final purchasing managers' index (PMI) of the year hit 51.5, up from 50.5 in November and a fourth straight month of improvement.

A reading above 50 indicates expansion in the key sector, while one below signals shrinkage.

The figures reinforce recent indications that the world's second-largest economy is finally emerging from its slumber.

"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Qu Hongbin, HSBC's chief economist for China, said in the release.

On oil markets New York's main contract, light sweet crude for delivery in February, shed 28 cents to $US90.85 a barrel and Brent North Sea crude for February slipped one cent to $US110.61.

Gold was at $US1,660.60 at 0445 GMT compared with $US1,658.90 late Friday.

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Over it - banish the term fiscal cliff

SPOILER alert: This story contains words and phrases that some people want to ban from the English language. 'Spoiler alert' is among them. So are 'kick the can down the road,' 'trending' and 'bucket list'.

A dirty dozen have landed on the 38th annual List of Words to be Banished from the Queen's English for Misuse, Overuse and General Uselessness.

The nonbinding, tongue-in-cheek decree released on Monday by northern Michigan's Lake Superior State University is based on nominations submitted from the United States, Canada and beyond.

Spoiler alert, the seemingly thoughtful way to warn readers or viewers about looming references to a key plot point in a film or TV show, nevertheless passed its use-by date for many, including Joseph Foly, of Fremont, California.

He argued in his submission the phrase is "used as an obnoxious way to show one has trivial information and is about to use it, no matter what."

The phrase receiving the most nominations this year is 'fiscal cliff', banished because of its overuse by media outlets when describing across-the-board federal tax increases and spending cuts that economists say could harm the economy in the new year without congressional action.

University spokesman Tom Pink said that in nearly four decades, the Sault Ste. Marie school has "banished" around 900 words or phrases, and somehow the whole idea has survived rapidly advancing technology and diminishing attention spans.

Nominations used to come by mail, then fax and website, he said, and now most come through the university's Facebook page. That's fitting, since social media has helped accelerate the life cycle of certain words and phrases, such as this year's entry 'YOLO' - "you only live once."

"The list surprises me in one way or another every year, and the same way every year: I'm always surprised how people still like it, love it," he said.

As usual, the etymological exercise - or exorcise - only goes so far. Past lists haven't eradicated 'viral,' 'amazing,' 'LOL' or 'man cave' from everyday use.

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Sydney's firework go off with a roar

Sydney's lord mayor says the city is spending $6.6 million on its New Year's Eve event. Source: AAP

SYDNEY'S skyline has exploded in gold, pink, green and blue as part of the traditional New Year's Eve family-oriented curtain raiser.

The ten minute spectacular at 9pm (AEDT)- which illuminated the city and dazzled spectators - is a warm-up for the city's midnight show-stopper.

Under balmy and clear skies, tens of thousands of revellers lined Darling Harbour and other viewing hotspots, and about 1.5 million filled the harbour foreshore.

As streams of incandescent colour shot into the heavens, families on picnic blankets cheered and clapped along with others aboard luxury yachts.

Colours streamed from four barges situated around the harbour, with gold flashes cascading like tinsel as a gold butterfly-like design lit up the bridge.

At one stage fireworks fell from the structure like a waterfall, with the display reaching a kaleidoscopic climax of green, red and blue fireworks.

"It was all great, amazing," said Lee Whittaker, from Denistone, who brought her kids Mel and Leon with her.

Kallya Alffonso, from Maroubra, said festivities in Sydney were much better than her native Brazil.

"Sydney is a very pretty city, the Harbour Bridge and Opera House make it looks spectacular," she said.

"It's the spirit too, everybody is here together, and it's just the whole atmosphere."

Event organisers estimate a record 130,000 people packed Sydney's Darling Harbour for the 9pm display.

"There is definitely more people here than last year," organiser Sal Sharah told AAP.

"We've had great weather and a great lead up to this evening."

The early show was greeted with cheers from the thousands of spectators at Lady Macquarie's Chair, many of whom had waited much of the day under a hot sun.

"I think they were awesome," said nine-year-old Nell Whittaker.

"I loved the sparkle effect, and they were really loud too."

A much-hyped show-stopper is then set to wow the world at midnight.

All eyes are on Sydney, one of the first major cities to ring in the new year, with more than a billion people expected to tune in to watch the $6.6 million party worldwide.

Many local partygoers are only now emerging to gather at pubs and clubs in time for midnight.

Others will cram onto rooftops or gather in backyards for a VB and sausage sambo to say goodbye to 2012

Celebrations in Sydney dwarf rival cities, with only 100,000 attending Paris fireworks, while 700,000 revellers gather for festivities in London.

Pop princess Kylie Minogue, chosen as the event's creative ambassador, will be honoured with a one-of-a-kind sparkling musical note firework at the turn of the year.

The semiquaver will be one of 100,000 individual pyrotechnic creations this year, including brand new koala, octopus and hand images up in lights.

People going to the CBD to watch the fireworks have been urged to leave their cars behind and take public transport, with road closures in place and extra + and buses laid on for the night.

The Sydney Harbour Bridge will be closed in both directions from 11pm on Monday to 1am on Tuesday.

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Syrian troops hit Homs, kill 23 children

SYRIAN regime forces have pressed a fierce offensive in Homs after overrunning a key neighbourhood of the central city, according to a watchdog, which also listed 23 children killed in violence across the country.

The latest bloodletting on Sunday came after international peace envoy Lakhdar Brahimi warned in Moscow that Syria was facing a choice between "hell or the political process" after talks with Russian Foreign Minister Sergei Lavrov.

The Syrian Observatory for Human Rights said the army, after Saturday seizing the Deir Baalbeh district in fighting which left dozens dead, fired off barrages of rockets into surrounding rebel-held neighbourhoods on Sunday as it sought to capitalise on its victory.

Troops also bombarded the nearby opposition stronghold of Rastan.

The Britain-based Observatory, which gathers its information from a network of activists and medics in civilian and military hospitals, said the final death toll from Saturday's clashes had not been finalised due to communications difficulties in the area.

A video released by the Syrian Revolution General Commission, a grassroots network of anti-regime activists, showed the bodies of nine male victims from Deir Baalbeh lying on the ground, their faces bloody and mutilated.

The authenticity of the video could not immediately be verified.

Near the capital on Sunday, loyalist troops carried out air raids on towns along the eastern outlying belt and on Daraya in the southwest, while fighting between rebels and the army erupted in the northeastern and southwestern suburbs.

The Observatory said 13 children were among the victims of bombardments in and around Damascus on Saturday, while 10 children were killed in air strikes across Aleppo province, including on rebel-held Aazaz near the Turkish border.

Analysts said the surge in air strikes by Syrian forces were a desperate attempt by President Bashar al-Assad's regime to reverse rampant gains by rebel fighters, especially in the north of the country.

Meanwhile, rebels made further advances on Sunday in the battle for the Hamidiyeh military post in the northwest province of Idlib which they stormed the previous day, the watchdog said.

During Sunday's clashes, three insurgents were wounded by machinegun fire, while warplanes raided a nearby village, the Observatory said.

A takeover of the Hamidiyeh post would pave the way for a rebel offensive against the nearby Wadi Deif base, one of the government's last outposts in the north.

Opposition fighters, mostly from the jihadist Al-Nusra Front, have been closing in on the base since overrunning the nearby town of Maaret al-Numan in early October.

In the south, a rebel was killed on Sunday in battles for control of several small border crossings along the regime-held frontier with Jordan, the Observatory said.

Syria and Jordan share a 370-kilometre-long border which hundreds of people cross on foot every day to escape the bloody civil war that the Observatory says has killed at least 45,000 people.

Brahimi on Saturday held talks with Lavrov on his end-of-year bid to accelerate moves to halt the Syria conflict.

He painted a stark picture of Syrian neighbours Jordan and Lebanon being overrun by a million refugees should heavy fighting for the seat of power break out in Syria's five-million-strong capital.

If this fighting "develops into something uglier ... (refugees) can go to only two places - Lebanon and Jordan", Brahimi said.

"So if the alternative is hell or the political process, we have all of us got to work ceaselessly for a political process," he said.

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East Timor hailed a UN success

TROOPS sent by Australia and New Zealand have all gone home and only a handful of United Nations police will be left when the UN flag comes down in East Timor's capital of Dili after six years.

"As of Monday, the liquidation team will be there. They are the ones who are unscrewing all the lightbulbs," said Ameerah Haq, UN under-secretary general and former head of the UN mission in East Timor.

The UN played a key role in the birth of East Timor, officially known as Timor Leste. It organised the 1999 referendum that ended 24 years of Indonesian occupation in which an estimated 183,000 people died through conflict, starvation or disease.

It helped run East Timor until 2002 when an independent government took over.

For many Timorese leaders it was a national humiliation to seek UN help in 2006 when soldiers sacked from the army launched a mutiny which sparked factional violence that left dozens dead and 150,000 people in makeshift camps.

"You don't want to say that a country learned by crisis," said Haq, but in this case there was "good benefit" from the Timorese seeing in a few days the burning, looting and destruction threatening all they had built in the past seven years.

"They just saw it collapse before their eyes and it was like: we did this to ourselves," she told AFP.

"It was a watershed moment in their experience."

The UN was able to make an impact because it was the East Timorese government which asked for help and working in a country the size of Timor was not like bringing peace to Sudan or the Democratic Republic of Congo.

"In Timor, everything happened as it should," Haq said. "We had great access to the leadership, we had complete freedom of movement within the country."

The country has now had two relatively calm presidential elections, the 3000-strong police force has been retrained district by district, and the judiciary reformed.

Haq said she had seen political tensions boil up again. There were times when she would tell political leaders to "tone down the rhetoric".

"They would always tell me 'we all struggled together, we all saw what happened in 2006'," she said.

"They always assured me they would always stop short of the trigger. I learned to have confidence in that."

The big powers are now taking a more intense look at East Timor, which has significant oil and gas reserves even though it remains one of the most impoverished countries.

As a result US Secretary of State Hillary Clinton visited in September and China built the presidential palace and military headquarters.

Brazil is also a key source of aid while Cuba has trained hundreds of Timorese doctors.

Haq said East Timor knows that it must now concentrate on lifting the half of the 1.1 million population living below the poverty line.

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Paper to publish comic book on Mohammed

A FRENCH weekly known for publishing cartoons of Prophet Mohammed to the ire of conservative Muslims says it plans to release a comic book biography of Islam's founder that will be researched and educational.

Satirical newspaper Charlie Hebdo has on several occasions depicted Islam's prophet in an effort to defend free speech and defy the anger of Muslims who believe depicting Mohammed is sacrilegious.

"It is a biography authorised by Islam since it was edited by Muslims," said Charlie Hebdo's publisher and the comic's illustrator, who goes by the name Charb.

"I don't think higher Muslim minds could find anything inappropriate," Charb said on Sunday.

The biography will be published on Wednesday and was put together by a Franco-Tunisian researcher known only as Zineb, Charb said.

The publisher said the idea for the comic book came to him in 2006 when a newspaper in Denmark published cartoons of Mohammed, later republished by Charlie Hebdo, drawing angry protests across the Muslim world.

"Before having a laugh about a character, it's better to know him. As much as we know about the life of Jesus, we know nothing about Mohammed," Charb said.

In September, Charlie Hebdo published cartoons of a naked Mohammed as violent protests were taking place in several countries over a low-budget film made in the United States that insults the prophet.

In 2011 Charlie Hebdo's offices were hit by a firebomb and its website pirated after publishing an edition titled "Charia Hebdo" featuring several Mohammed cartoons.

Charb, who has received death threats, lives under police protection.

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Madonna builds ten schools in Malawi

Madonna has built 10 primary schools in Malawi during 2012, her charity has announced. Source: AAP

FORMER Material Girl Madonna has built 10 primary schools in Malawi during 2012, her charity announced.

Two years after abandoning a $US15 million ($A14.52 million) girls academy, the pop diva said on Friday projects in 2012 would educate 4871 children in the tiny southern African country.

The projects were carried out by her charity Raising Malawi and the global non-profit buildOn.

"I am overjoyed that my commitment along with buildOn's to help educate the children of Malawi has come to fruition," Madonna said in a statement issued by her charity.

"In a country where girls have little opportunity for education, it's additionally inspiring to know that more than half the students attending will be young girls.

"The fact that more than 4800 children in Malawi will get to go to school next year is a tremendous step forward for their individual growth and the growth of Malawi," Madonna added.

The schools, which had been scheduled to be built over 18 months, were completed six months ahead of schedule.

The charity said six of the schools are already in use and all 10 would be up and running in January 2013 for the first day of school in the New Year.

Madonna is no stranger to Malawi.

In 2006 she adopted toddler David Banda under controversial circumstances and two years later adopted another child, Mercy James.

Her charity, Raising Malawi, has poured millions of dollars in support of orphanages and a network of orphan care service providers.

Malawi is ranked by the UN Human Development Index as one of the world's 20 least developed countries and 39 per cent of its 13 million citizens live below the poverty line, on less than a dollar a day.

UNICEF estimates that only 26 per cent of boys and 16 per cent of girls complete primary school because of poverty and the long distances travelled to reach schools.

Madonna controversially stopped the construction of the state-of-the-art $US15 million Raising Malawi Academy for Girls-RMAG- in Chinkhota village, 15 kilometres from the administrative capital Lilongwe, after it was mired in allegations of financial mismanagement.

The academy, styled on the lines of the one built by TV host Oprah Winfrey in South Africa, had been meant to offer 500 scholarships to girls from poor backgrounds and groom them into future leaders.

In abandoning the project, Madonna said the academy would not be adequate as two-thirds of the girls were not educated beyond primary school. Instead, she said, she wanted to reach "thousands and not hundreds of girls" by constructing several schools.

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Second man charged for Christmas murder

A second man has been charged following the Christmas Day murder of a man north of Brisbane. Source: AAP

A SECOND man has been charged following the Christmas Day murder of a man north of Brisbane.

Police said a 31-year-old man from Kippa Ring had been charged with one count of murder after a 43-year-old man died following a disturbance at a Morayfield home just after 9.30pm (AEST) on Tuesday.

The victim was found unconscious in the driveway of the property and later died in hospital.

The accused man is expected to face Brisbane Magistrates Court later on Saturday.

A 20-year-old man from Deception Bay has already been charged with murder and faced Caboolture Magistrates Court on Friday.

It's believed police are searching for up to four people who may have been involved in the man's death and their investigations are ongoing.

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Man drowns at NSW Central Coast beach

A MAN has drowned at a beach on the NSW Central Coast after getting caught in a rip.

Police say the 27-year-old man was one of six people swimming at Budgewoi beach when four members of the group got into trouble because of strong currents at about 5.25pm (AEDT) on Saturday.

Most of the group were helped out of the water by friends but the 27-year-old could not be reached.

He was later taken from the water by beachgoers but could not be revived.

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Madonna builds ten schools in Malawi

Madonna has built 10 primary schools in Malawi during 2012, her charity has announced. Source: AAP

FORMER Material Girl Madonna has built 10 primary schools in Malawi during 2012, her charity announced.

Two years after abandoning a $US15 million ($A14.52 million) girls academy, the pop diva said on Friday projects in 2012 would educate 4871 children in the tiny southern African country.

The projects were carried out by her charity Raising Malawi and the global non-profit buildOn.

"I am overjoyed that my commitment along with buildOn's to help educate the children of Malawi has come to fruition," Madonna said in a statement issued by her charity.

"In a country where girls have little opportunity for education, it's additionally inspiring to know that more than half the students attending will be young girls.

"The fact that more than 4800 children in Malawi will get to go to school next year is a tremendous step forward for their individual growth and the growth of Malawi," Madonna added.

The schools, which had been scheduled to be built over 18 months, were completed six months ahead of schedule.

The charity said six of the schools are already in use and all 10 would be up and running in January 2013 for the first day of school in the New Year.

Madonna is no stranger to Malawi.

In 2006 she adopted toddler David Banda under controversial circumstances and two years later adopted another child, Mercy James.

Her charity, Raising Malawi, has poured millions of dollars in support of orphanages and a network of orphan care service providers.

Malawi is ranked by the UN Human Development Index as one of the world's 20 least developed countries and 39 per cent of its 13 million citizens live below the poverty line, on less than a dollar a day.

UNICEF estimates that only 26 per cent of boys and 16 per cent of girls complete primary school because of poverty and the long distances travelled to reach schools.

Madonna controversially stopped the construction of the state-of-the-art $US15 million Raising Malawi Academy for Girls-RMAG- in Chinkhota village, 15 kilometres from the administrative capital Lilongwe, after it was mired in allegations of financial mismanagement.

The academy, styled on the lines of the one built by TV host Oprah Winfrey in South Africa, had been meant to offer 500 scholarships to girls from poor backgrounds and groom them into future leaders.

In abandoning the project, Madonna said the academy would not be adequate as two-thirds of the girls were not educated beyond primary school. Instead, she said, she wanted to reach "thousands and not hundreds of girls" by constructing several schools.

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Second man charged for Christmas murder

A second man has been charged following the Christmas Day murder of a man north of Brisbane. Source: AAP

A SECOND man has been charged following the Christmas Day murder of a man north of Brisbane.

Police said a 31-year-old man from Kippa Ring had been charged with one count of murder after a 43-year-old man died following a disturbance at a Morayfield home just after 9.30pm (AEST) on Tuesday.

The victim was found unconscious in the driveway of the property and later died in hospital.

The accused man is expected to face Brisbane Magistrates Court later on Saturday.

A 20-year-old man from Deception Bay has already been charged with murder and faced Caboolture Magistrates Court on Friday.

It's believed police are searching for up to four people who may have been involved in the man's death and their investigations are ongoing.

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Man drowns at NSW Central Coast beach

A MAN has drowned at a beach on the NSW Central Coast after getting caught in a rip.

Police say the 27-year-old man was one of six people swimming at Budgewoi beach when four members of the group got into trouble because of strong currents at about 5.25pm (AEDT) on Saturday.

Most of the group were helped out of the water by friends but the 27-year-old could not be reached.

He was later taken from the water by beachgoers but could not be revived.

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Japan whaling fleet leaves for Antarctica

Japan's whaling fleet has left port for the Southern Ocean on their annual hunt. Source: AAP

JAPANESE whaling vessels have left port bound for the Southern Ocean on their annual hunt of the marine mammals, a media report and Greenpeace say.

Citing the Fisheries Agency, Kyodo News reported on Friday three vessels had departed from the far-western port of Shimonoseki, while environmental group Greenpeace said the mother ship had left another port also in the country's west.

"The mother ship, Nisshin Maru, left Innoshima today," said Greenpeace Japan's executive director Junichi Sato on Friday.

"Today was virtually the last day when they could leave for the Antarctic Sea," he said, adding that the fisheries agency had announced that the departure would take place within this month.

The mother ship would join the three vessels that left Shimonoseki earlier in the day, Kyodo said.

The fleet plans to hunt up to 935 Antarctic minke whales and up to 50 fin whales through March, the fisheries agency said earlier.

Japanese authorities refused to confirm either departure to AFP.

"We do not disclose when the vessels leave or left for safety reasons," said an agency official said.

Coastguard officers will be aboard the ships to cope with possible harassment from anti-whaling activists, the coastguard and fisheries agency officials said earlier this month.

The fleet's departure comes weeks later than expected and days after a US court ordered militant environmental group Sea Shepherd to stay at least 500 yards (metres) from whaling vessels.

The injunction was ordered by the US Court of Appeals for the Ninth Circuit, in the latest step in a legal battle between the anti-whaling group and Japanese authorities over vessels in the Southern Ocean.

It said Sea Shepherd and Canadian militant conservationist Paul Watson, who is wanted by Interpol, "are enjoined from physically attacking any vessel engaged by plaintiffs", including Japan's Institute of Cetacean Research.

In addition, they are banned from "navigating in a manner that is likely to endanger the safe navigation of any such vessel", said the order, issued on Monday.

"In no event shall defendants approach plaintiffs any closer than 500 yards (460 metres) when defendants are navigating on the open sea," it added. The joint plaintiffs are Kyodo Senpaku Kaisha, Ltd., Tomoyuki Ogawa and Toshiyuki Miura.

It follows the issuing in August of an arrest notice by Interpol for Watson, Sea Shepherd's founder, who jumped bail in Germany in July.

He had been arrested there on charges from Costa Rica relating to a high-seas confrontation over shark finning in 2002.

In a statement on its website, Sea Shepherd called the new US court ruling "the first shot of the season" by Japanese whalers.

Confrontations between the whalers and activists have escalated in recent years, and the Japanese cut their hunt short in early 2011 due to Sea Shepherd harassment.

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Apple must pay on copyright: Chinese court

A Chinese court has ordered Apple to pay 1.03 million yuan ($A159,740) to eight Chinese writers. Source: AAP

A CHINESE court has ordered Apple Inc to pay 1.03 million yuan ($A159,740) to eight Chinese writers and two companies who say unlicensed copies of their work were distributed through Apple's online store.

The Beijing No. 2 Intermediate People's Court ruled on Thursday that Apple violated the writers' copyrights by allowing applications containing their work to be distributed through its App Store, according to an official who answered the phone at the court and said he was the judge in the case.

He refused to give his name, as is common among Chinese officials.

The award was less than the 12 million yuan ($A1.84 million) sought by the authors.

The case grouped together eight lawsuits filed by them and their publishers.

An Apple spokeswoman, Carolyn Wu, said the company's managers "take copyright infringement complaints very seriously".

She declined to say whether the company would appeal.

Unlicensed copying of books, music, software and other products is widespread in China despite repeated government promises to stamp out violations.

Apple's agreement with application developers requires them to confirm they have obtained rights to material distributed through the company's App Store.

"We're always updating our service to better assist content owners in protecting their rights," Wu said.

The Chinese writers said they saw applications containing unlicensed versions of their books last year.

In November, a court ordered Apple to pay 520,000 yuan to the Encyclopedia of China Publishing House for copyright infringement in a separate case.

Apple is appealing, according to the official Xinhua News Agency.

In the latest case, the Beijing court awarded 605,000 yuan to one company and 21,500 yuan to the second, according to the court official.

The biggest individual judgment went to writer Han Ailian, who was awarded 186,000 yuan.

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US teachers bear arms to protect students

US teachers are flocking to gun training as states consider allowing educators to carry weapons. Source: AAP

SEVERAL US states are considering allowing school teachers to carry weapons and educators, determined not to allow a repeat of the Newtown massacre, are flocking to training sessions.

As gun control advocates try to outlaw military-style assault weapons and high-capacity magazines, gun enthusiasts, backed by the powerful National Rifle Association (NRA), are taking a very different approach.

The gun lobby argues that there is no way to stop crazy or evil people doing bad things and so the only sure-fire way to prevent mass shootings like the one at Sandy Hook primary is to take down the shooter.

In a rare press conference one week after 20-year-old Adam Lanza shot dead 20 six and seven-year-olds and six adults with a Bushmaster AR-15 assault rifle, the NRA called for armed guards in every school in the country.

But in Utah, one of the handful of American states that currently allows people to carry licensed concealed weapons into public schools, many teachers are unwilling to wait and see which political argument wins out.

In response to Newtown, the Utah Shooting Sports Council (USSC) waived its fee on Thursday for educators wanting to participate in training sessions to gain permits to carry concealed weapons.

More than half of the roughly 400 education professionals that showed an interest had to be turned away because there wasn't enough room on the course.

"We had about 400 that wanted to do it and we only had seating for about 180," USSC board member Bill Scott said.

The surge in interest was seen by organisers as a direct response to the shooting in Newtown, with teachers showing a heightened awareness that people are responsible for their own safety and wanted their own permits.

"A lot of these people may have shot all their lives and some of them may have never touched a gun," Scott said.

"We're not advocating that all teachers should be armed. We're just saying that those that choose to be armed, that want to get the training, they have the right to do that in Utah, we'd like to facilitate that."

While teachers train themselves to try to stop the next Lanza, state officials like Arizona Attorney General Tom Horne are busily crafting legislation to make sure they can legally do so.

"The proposal is that any school that wishes to do so may designate the principal or another designee to receive training in the use of firearms and how to handle emergencies such as that which occurred in Newtown," he said.

Ideally there would be an armed police officer in every school, but due to budget considerations this may not be possible, so training a designated teacher to handle firearms was "the next best solution," Horne said.

Pro-gun politicians in Florida, Minnesota, Oregon, South Dakota and Tennessee have also vowed to propose legislation in the coming months that would allow for armed teachers in schools.

"Hopefully, these monsters, these animals that are doing this stuff will stay away from the schools," said Scott.

"Our view also is that it's not just that you would actively engage the shooter, just the fact that the bad guys know that teachers are armed in Utah is a huge deterrent.

"They tend to pick targets where they know there will be lots of innocent victims and they're not going to encounter any resistance."

As teachers stripped semi-automatic pistols on tables at the USSC gathering, Democratic Senator Dianne Feinstein was putting the final touches to a bill that would ban weapons like the one Lanza used in Newtown.

Gun rights advocates, led by the NRA, are stringently against such measures.

"The thing about them being assault weapons, it's a misnomer," said Scott.

"These weapons are no different than a standard sporting weapon. We don't support any bans on those because true military weapons are already banned in the United States."

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Asian shares rise amid US fiscal concerns

ASIAN shares have risen, with Tokyo scaling a 21-month high thanks to a weaker yen, but pessimism lingers over the prospects of a US "fiscal cliff" deal by the year-end deadline.

Tokyo's benchmark Nikkei 225 index on Thursday climbed 0.91 per cent, or 92.62 points, to 10,322.98, the highest level since March 11 last year when a massive quake struck Japan, sparking a tsunami and the worst atomic crisis in a generation.

The dollar rose to its highest level in more than two years against the yen as Prime Minister Shinzo Abe took office, raising expectations that the Bank of Japan would initiate more aggressive monetary easing under his leadership.

Seoul closed 0.26 per cent, or 5.10 points, higher at 1,987.35, and Sydney gained 0.28 per cent, or 12.8 points, to 4,648.0.

Hong Kong climbed 0.35 per cent, or 78.6 points, to 22,619.78, while Shanghai eased 0.60 per cent, or 13.23 points, to 2,205.90.

Regional gains came despite overnight falls on Wall Street as investors continue to fret over the looming fiscal cliff - a series of tax hikes and spending cuts worth some $US600 billion ($A580.92 billion) due to take effect in January.

The Dow Jones Industrial Average was down 0.19 per cent to finish the session at 13,114.59.

The broad-market S&P 500 lost 6.83 points (0.48 per cent) to end at 1,419.83, while the tech-rich Nasdaq Composite shed 22.44 points (0.74 per cent) to 2,990.16.

US lawmakers are set to return to the negotiating table after the Christmas holidays in a last-ditch effort to reach a deal, with experts warning that going over the cliff could drive the world's biggest economy back into recession.

The Treasury Department said on Wednesday the government would hit its legal borrowing limit by Monday, setting in motion emergency measures to keep the government operating for several more weeks.

The Treasury's manoeuvring is designed to put off until February or March the prospect of a full-blown debt crisis, indicating that the US budget wrangling could continue well into 2013.

Despite those concerns the dollar made steady gains, hovering around Y85.79 in afternoon Tokyo trade, the highest level since September 2010.

The euro fetched Y113.57 and $US1.3242 compared with Y113.19 and $US1.3230 in New York late on Wednesday.

Oil prices were mixed, with New York's main contract, light sweet crude for delivery in February, adding six US cents to $US91.04 a barrel. Brent North Sea crude for February delivery shed 10 US cents to $US110.97.

Gold was at $US1,657.30 at 1940 AEDT, compared with $US1,658.10 late on Wednesday.

In other markets:

- Taipei rose 0.19 per cent, or 14.22 points, to 7,648.41.

Hon Hai Precision rose 0.56 per cent to $Tw89.0 while TSMC was 0.42 per cent down at $Tw95.60.

- Wellington gained 0.19 per cent, or 7.63 points, to 4,065.44.

Telecom Corp was down 1.32 per cent at $NZ2.25, while Fletcher Building rose 1.81 per cent to $NZ8.45.

- Manila fell 0.65 per cent, or 37.94 points, to 5,794.89.

Metropolitan Bank and Trust Company slipped 0.77 per cent to 102.10 pesos, while BDO Unibank rose 0.62 per cent to 72.75 pesos.

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4 Afghan police killed with 'insider' help

FOUR Afghan policemen have been killed and two wounded in an insurgent attack assisted by an insider loyal to the Taliban, officials say.

Attackers stormed the police post at Tarin Kowt, a remote district in the southern province of Oruzgan, before dawn on Thursday and killed the officers as they slept, police spokesman Farid Ahmad Aiel told AFP.

One policeman who fled with the insurgents was believed to be a Taliban infiltrator who aided the attack, Aiel said.

"He had links with the Taliban and he helped the Taliban to attack the post. He had called them to attack while the other policemen were sleeping," the spokesman said.

Abdullah Hemat, a spokesman for the Oruzgan provincial administration, confirmed the incident and also blamed a Taliban infiltrator. One gunman was wounded during fighting and later arrested, he added.

"Insider" attacks by members of the police and army have become a major concern for the US-led NATO force deployed in Afghanistan.

The attacks have seen a dramatic surge this year, causing scores of casualties among international troops and among local security forces.

The Taliban claim that insider attacks are carried out by its supporters. Afghan authorities and their NATO allies say most are personally motivated.

On Monday a female police officer killed an American adviser in Kabul's police headquarters. Police said she was mentally ill.

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UN peace envoy urges real change in Syria

Envoy to Syria Lakhdar Brahimi is seeking help from Russia to get the warring parties to negotiate. Source: AAP

INTERNATIONAL envoy Lakhdar Brahimi has called for "real change" in war-torn Syria including a transitional government with full powers until elections can be held.

The envoy unveiled his initiative in Damascus on Thursday as Russia, the Syrian government's most powerful ally, denied the existence of a joint peace plan with the United States, amid a flurry of end-of-year diplomatic activity on the crisis.

"Change should not be cosmetic; the Syrian people need and require real change, and everyone understands that," the UN-Arab League envoy said on the fifth day of his latest peace mission to Syria.

"We need to form a government with all powers... which assumes power during a period of transition. That transition period will end with elections," Brahimi told reporters.

He did not specify a date for the proposed elections. Syria elected a parliament in May and President Bashar al-Assad's current term expires in 2014.

"The transition period should not lead to the collapse of the state and its institutions," Brahimi said, adding that the initiative was incomplete.

"We prefer... a project whose facilitation the parties have agreed upon, and, if they do not, the last solution is going to the (UN) Security Council which will make a binding resolution."

Brahimi, who has held talks with Assad as well as with opposition groups tolerated by the regime, replaced former UN chief Kofi Annan after his dramatic resignation in August over what he said was the failure of major powers to back his peace plan.

A diplomat at the UN Security Council said Brahimi, the veteran Algerian troubleshooter, had received no support from either side since arriving in Syria on Sunday.

"Assad appears to have stonewalled Brahimi again, the UN Security Council is not even close to showing the envoy the kind of support he needs and the rebels will not now compromise," said the diplomat.

Brahimi will hold talks on Saturday with Moscow, Russia's foreign ministry said.

Russia on Thursday hosted a Syrian delegation led by Deputy Foreign Minister Faisal Muqdad.

"This is of course a part of the efforts we are undertaking to encourage dialogue not just with the government but all opposition forces," Russian spokesman Alexander Lukashevich said.

Moscow has refused to end its co-operation with the Assad regime during the conflict, despite the fury of the West.

The diplomatic drive comes as Western media report about a new Russia-US initiative that would see Assad stay in power until 2014 but prevent him from renewing his mandate.

Lukashevich vehemently denies any such plan.

"There was not and is not such a plan and it is not being discussed," he said.

Russia insists it will not prop up Assad's regime but it will not seek to persuade the Syrian president to step down, saying it is up to the Syrian people to decide the country's future.

The diplomatic drive comes after the Syrian Observatory for Human Rights said it had documented at least 45,000 deaths in the civil war, which erupted in March 2011 following a brutal crackdown on Arab Spring-inspired protests.

The Observatory said the real number of those killed could be as high as 100,000, with both sides concealing many casualties.

The grim statistics add gravity to a UN warning that the humanitarian situation is rapidly deteriorating.

The UN High Commissioner for Refugees "estimates that if fighting in Syria continues, the refugee figure could reach 1.1 million by June 2013," a report said.

That is double the current number of those registered by the United Nations.

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Russian ban on US adoption nears approval

RUSSIA'S upper house of parliament is set to vote on a bill barring Americans from adopting Russian children, the final legislative hurdle requiring clearance before the controversial law is sent to President Vladimir Putin for signing.

The highly contentious measure - retaliation for a US law sanctioning Russian officials implicated in the prison death of lawyer Sergei Magnitsky in 2009 - has inflamed tensions between the two former Cold War rivals.

The draft legislation has already passed the three required readings in the State Duma lower house despite the protests over the measure from human rights advocates and even senior officials.

The Federation Council upper chamber - comprised exclusively of Putin allies and ruling party members - is expected to overwhelmingly approve the measure on Wednesday after it was backed in a committee meeting the day before.

Putin has not made clear explicitly if he will sign the law but comments by his spokesman on Tuesday appeared to indicate that he backed the measure.

"This will not lead to any infringement of international rights," Dmitry Peskov said.

"Russia is fully implementing the rights it has under international law."

The bill also includes a provision banning Russian political organisations that receive US funding.

In Washington, the White House said on Tuesday that "we deeply regret recent efforts to restrict civil society activity in Russia" and vowed to continue raising concerns over the proposed adoption ban.

"Children should have every opportunity to grow up in loving families," US President Barack Obama's national security staff said in a statement.

"Their fate should not be linked to unrelated political considerations."

The legislation came up this month after Obama signed into law the so-called Magnitsky Act, a measure paying tribute to the Russian lawyer who died in custody after exposing a $US235 million ($A227 million) police embezzlement scheme.

The US law blacklists Russian officials allegedly involved in his death.

Magnitsky's employer Hermitage Capital - once Russia's largest Western investment fund - and family both believe he was tortured to death.

But Russian prosecutors this week moved to drop charges against the only person on trial in the case.

They are also due to hold hearings on Thursday into a separate set of fraud charges that originally put Magnitsky under arrest.

The Russian MPs' response has agitated some cabinet members including Foreign Minister Sergei Lavrov, who has said banning adoption as an institution "is wrong" in a rare rebuke to the official position.

Putin's advisory human rights council also condemned the pending legislation as potentially unconstitutional.

Leading rights advocate Lyudmila Alexeyeva said she planned to appeal to the constitutional court should Putin sign the bill into law.

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Girls taken in 'domestic incident': Police

POLICE do not hold concerns for the safety of two young girls who were feared to have been abducted from Alexandra Hills this afternoon.

A police spokeswoman said it is now being treated as a domestic incident and it's believed the girls were taken by someone known to them.

Earlier it was reported that a three-year-old and five-year-old girl were taken from a shopping centre about 4.30pm.

18.16 | 0 komentar | Read More

Egypt's Morsi signs new charter into law

EGYPTIAN President Mohamed Morsi has signed into law a new constitution voted in despite weeks of opposition protests, but he was left facing an economic crisis and international disquiet over his rule.

The Islamist-dominated senate convened on Wednesday to swear in 90 new members appointed by Morsi. It was expected to draft a law for legislative elections for the dissolved lower house that have to be held by the end of February.

The National Salvation Front opposition coalition said it would vie for seats in the parliament, which has powers under the new charter that could hamper Morsi's ability to govern.

"We will work together to enter the election," Front spokesman Khaled Dawoud said.

He also said the coalition would legally contest the referendum, which it claims was riddled by fraud. Its supporters had demonstrated since late November against the document, with some clashes with pro-Morsi supporters turning bloody.

The national electoral commission said late on Tuesday that 64 per cent of voters in the two-round referendum backed the new constitution. Turnout was 33 per cent, it said.

Morsi immediately afterwards signed into law the charter, which had been written up by his Islamist allies.

Christians and liberals boycotted the process in protest against changes they saw as weakening human rights, especially those of women, and possibly paving the way for the introduction of a form of fundamentalist Islamic law.

The US, which gives $US1.3 billion ($A1.26 billion) a year to Egypt's influential military, called on Morsi to work to "bridge divisions" with the largely secular opposition.

"We have consistently supported the principle that democracy requires much more than simple majority rule," acting US State Department spokesman Patrick Ventrell said in a statement.

"We hope all sides will re-commit themselves to condemn and prevent violence."

The political crisis has taken a heavy toll on Egypt's economy.

The state-owned Al-Ahram newspaper reported there was "fear in the Egyptian street" after rating agency Standard and Poor's downgraded Egypt's long-term credit rating one notch to B-.

The chief economist at CI Capital, Mona Mansour, said a crucial $US4.8 billion International Monetary Fund loan that had been scheduled for this or next month might be postponed until the new parliament is established in March.

18.16 | 0 komentar | Read More

Russian ban on US adoption nears approval

RUSSIA'S upper house of parliament is set to vote on a bill barring Americans from adopting Russian children, the final legislative hurdle requiring clearance before the controversial law is sent to President Vladimir Putin for signing.

The highly contentious measure - retaliation for a US law sanctioning Russian officials implicated in the prison death of lawyer Sergei Magnitsky in 2009 - has inflamed tensions between the two former Cold War rivals.

The draft legislation has already passed the three required readings in the State Duma lower house despite the protests over the measure from human rights advocates and even senior officials.

The Federation Council upper chamber - comprised exclusively of Putin allies and ruling party members - is expected to overwhelmingly approve the measure on Wednesday after it was backed in a committee meeting the day before.

Putin has not made clear explicitly if he will sign the law but comments by his spokesman on Tuesday appeared to indicate that he backed the measure.

"This will not lead to any infringement of international rights," Dmitry Peskov said.

"Russia is fully implementing the rights it has under international law."

The bill also includes a provision banning Russian political organisations that receive US funding.

In Washington, the White House said on Tuesday that "we deeply regret recent efforts to restrict civil society activity in Russia" and vowed to continue raising concerns over the proposed adoption ban.

"Children should have every opportunity to grow up in loving families," US President Barack Obama's national security staff said in a statement.

"Their fate should not be linked to unrelated political considerations."

The legislation came up this month after Obama signed into law the so-called Magnitsky Act, a measure paying tribute to the Russian lawyer who died in custody after exposing a $US235 million ($A227 million) police embezzlement scheme.

The US law blacklists Russian officials allegedly involved in his death.

Magnitsky's employer Hermitage Capital - once Russia's largest Western investment fund - and family both believe he was tortured to death.

But Russian prosecutors this week moved to drop charges against the only person on trial in the case.

They are also due to hold hearings on Thursday into a separate set of fraud charges that originally put Magnitsky under arrest.

The Russian MPs' response has agitated some cabinet members including Foreign Minister Sergei Lavrov, who has said banning adoption as an institution "is wrong" in a rare rebuke to the official position.

Putin's advisory human rights council also condemned the pending legislation as potentially unconstitutional.

Leading rights advocate Lyudmila Alexeyeva said she planned to appeal to the constitutional court should Putin sign the bill into law.

18.16 | 0 komentar | Read More

Girls taken in 'domestic incident': Police

POLICE do not hold concerns for the safety of two young girls who were feared to have been abducted from Alexandra Hills this afternoon.

A police spokeswoman said it is now being treated as a domestic incident and it's believed the girls were taken by someone known to them.

Earlier it was reported that a three-year-old and five-year-old girl were taken from a shopping centre about 4.30pm.

18.16 | 0 komentar | Read More

Egypt's Morsi signs new charter into law

EGYPTIAN President Mohamed Morsi has signed into law a new constitution voted in despite weeks of opposition protests, but he was left facing an economic crisis and international disquiet over his rule.

The Islamist-dominated senate convened on Wednesday to swear in 90 new members appointed by Morsi. It was expected to draft a law for legislative elections for the dissolved lower house that have to be held by the end of February.

The National Salvation Front opposition coalition said it would vie for seats in the parliament, which has powers under the new charter that could hamper Morsi's ability to govern.

"We will work together to enter the election," Front spokesman Khaled Dawoud said.

He also said the coalition would legally contest the referendum, which it claims was riddled by fraud. Its supporters had demonstrated since late November against the document, with some clashes with pro-Morsi supporters turning bloody.

The national electoral commission said late on Tuesday that 64 per cent of voters in the two-round referendum backed the new constitution. Turnout was 33 per cent, it said.

Morsi immediately afterwards signed into law the charter, which had been written up by his Islamist allies.

Christians and liberals boycotted the process in protest against changes they saw as weakening human rights, especially those of women, and possibly paving the way for the introduction of a form of fundamentalist Islamic law.

The US, which gives $US1.3 billion ($A1.26 billion) a year to Egypt's influential military, called on Morsi to work to "bridge divisions" with the largely secular opposition.

"We have consistently supported the principle that democracy requires much more than simple majority rule," acting US State Department spokesman Patrick Ventrell said in a statement.

"We hope all sides will re-commit themselves to condemn and prevent violence."

The political crisis has taken a heavy toll on Egypt's economy.

The state-owned Al-Ahram newspaper reported there was "fear in the Egyptian street" after rating agency Standard and Poor's downgraded Egypt's long-term credit rating one notch to B-.

The chief economist at CI Capital, Mona Mansour, said a crucial $US4.8 billion International Monetary Fund loan that had been scheduled for this or next month might be postponed until the new parliament is established in March.

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Weak yen gives Tokyo a Christmas boost

TOKYO stocks have closed 1.41 per cent higher as a weak yen helped boost the market which surged last week following a return to power for the country's conservatives.

The benchmark Nikkei 225 index gained 140.06 points to 10,080.12, while the broader Topix index of all first-section shares added 0.64 per cent, or 5.29 points, to finish at 838.01 on Christmas Day.

A strong yen is negative for Japanese markets as it erodes exporters' revenue and makes their products less competitive overseas.

The yen had dipped against the dollar and the euro on Monday after Japan's incoming prime minister Shinzo Abe, whose Liberal Democratic Party won a landslide national election this month, renewed calls on the Bank of Japan to take further steps to ease monetary policy.

Abe at the weekend threatened to change a law guaranteeing the bank's independence if it did not agree to set a two-per cent inflation target.

He is pressing the bank to set the goal in a bid to drag the country out of the deflation that has haunted its economy for years.

Japanese markets were closed on Monday for a holiday.

In forex trading, the dollar stood at Y84.75, slightly lower than Y84.82 in New York on Monday, where the greenback had climbed to the Y85 level last seen in April 2011.

The euro fetched Y111.75 and $US1.3181 from Y111.87 and $US1.3183 in US trade.

The Dow Jones Industrial Average ended a shortened Christmas Eve session on Monday down 0.39 per cent at 13,139.08 amid pessimism about prospects of a deal to avert the US "fiscal cliff" due to take effect in January.

"The fact that the discussions apparently remain bogged down is a negative, but the overarching factor for stocks - a cheaper yen - trumps everything else," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities in Tokyo.

Divided US politicians have until the end of the year to reach a deal to avert the fiscal cliff, a combination of steep tax hikes and spending cuts which threatens to drag the world's largest economy into recession.

In Tokyo, Mitsubishi Motors gained 1.23 per cent to Y82, despite transport officials inspecting the company's offices across Japan on Tuesday after it widened a vehicle recall to about 1.7 million vehicles.

Sharp dived 7.45 per cent to Y273, a fall sparked by profit-taking after the stock's recent rally.

Chinese shares put on 2.53 per cent, with the benchmark Shanghai Composite Index jumping 54.56 points to 2,213.61 to close near a six-month high.

Industrial Bank gained 5.89 per cent to 16.36 yuan, while property developer Gemdale jumped 5.61 per cent to 6.40 yuan.

Taiwan's weighted index rose 1.34 per cent, or 101.05 points, to 7,636.57.

Leading smartphone maker HTC rose 1.99 per cent to Tw$282.5 while Taiwan Semiconductor Manufacturing Co. was 1.37 per cent higher at Tw$96.5.

Most Asian markets were closed.

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Taxi driver dies in Victoria crash

The national holiday road toll has risen to eight, after a man died from a collision in Victoria. Source: AAP

VICTORIA'S holiday road toll has climbed to five following the death of a taxi driver in a crash in Geelong.

Investigators believe a Holden Commodore was travelling east on Ballarat Road, in the Geelong suburb of Hamlyn Heights, when it crashed into a stationary taxi at about 6.15pm (AEDT) on Tuesday.

The male driver of the taxi died at the scene while the driver of the Commodore was not hurt.

* The national road toll period runs from 0001 December 23, 2012, until 2359 January 3, 2013, local times, in line with the Australia New Zealand Policing Advisory Board.

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Toll rises to 10 as Vic taxi driver dies

THE national Christmas holiday road toll has risen to 10 with the death of a taxi driver in Victoria.

Police believe a Holden Commodore was travelling east on Ballarat Road in the Geelong suburb of Hamlyn Heights when it crashed into a stationary taxi about 6.15pm (AEDT) on Christmas Day.

The taxi driver died at the scene while the driver of the Commodore was not hurt.

Earlier in the day, a man believed to be in his 60s died in hospital from injuries he suffered in a crash on the Princes Highway at Dandenong on Monday night.

The deaths bring the Victoria toll to five since the holiday road period started on December 23.

In South Australia a motorist died when his car left the road and caught fire at Millicent, southeast of Adelaide. The death was the second in the state

NSW, Tasmania and Western Australia have each recorded one death.

* The national road toll period runs from 0001 December 23, 2012, until 2359 January 3, 2013, local times, in line with the Australia New Zealand Policing Advisory Board.

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US yachtsman rescued after 8 days adrift

VIETNAMESE fishermen have rescued an American man who had been drifting at sea for eight days on a disabled yacht.

Coastguard official Vo Hoang Liet said on Monday that Kenneth Putney of Melbourne, Florida, was in good health after being rescued on Thursday.

Liet says Putney, 54, told Vietnamese authorities he and three others were towing a yacht from the Philippines to Thailand when the rope broke on December 15.

He said Putney jumped onto the yacht because he feared it would be lost.

Putney drifted on the yacht for eight days before being rescued by the fishermen 25 kilometres off the coast.

Putney will be handed over to US embassy. Liet did not say what happened to the other vessel.

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Afghan policewoman kills US adviser

AN Afghan policewoman has shot and killed an American adviser outside the police headquarters in Kabul.

The woman, identified as Afghan police Sergeant Nargas, had entered a strategic compound in the heart of the capital and shot the adviser with a pistol as he came out of a small shop, Kabul Governor Abdul Jabar Taqwa told The Associated Press.

The woman was taken into Afghan custody shortly after the attack.

Earlier, she had asked bystanders where the governor's office was located, the governor said. As with many Afghans, the policewoman uses only one name.

The slain adviser was a contractor whose identity wasn't immediately released.

The attack occurred outside the police headquarters in a walled, highly secure compound which also houses the governor's office, courts and a prison. Kabul Deputy Police Chief Mohammad Daoud Amin said an investigation was under way.

The killing came just hours after an Afghan policeman shot five of his colleagues at a checkpoint in northern Afghanistan late Monday. The attacker then stole his colleague's weapons and fled to join the Taliban, said an official in Jawzjan province.

More than 60 international allies, including troops and civilian advisers, have been killed by Afghan soldiers or police this year.

More than 50 Afghan members of the government's security forces also have died this year in attacks by their own colleagues.

Taliban militants claim such attacks reflect a growing popular opposition to both foreign military presence and the Kabul government.

The provincial official in Jawzjan said the attacker on Sunday was an Afghan policeman manning a checkpoint in Dirzab District who turned his weapon on five colleagues before fleeing to the militant Islamist group.

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Syria peace envoy Brahimi meets Assad

UN-ARAB League peace envoy Lakhdar Brahimi says he hopes all parties will reach agreement to end the "worrying" situation in Syria.

After holding talks in Damascus with President Bashar al-Assad on Monday, he said: "I had the honour to meet the president and as usual we exchanged views on the many steps to be taken in the future."

He has been in Syria since Sunday to launch a fresh bid to end the conflict roiling the country.

He said the Syrian crisis was "always worrying". More than 44,000 people have been killed since the uprising against Assad's regime erupted in March last year, according to figures of the Syrian Observatory for Human Rights.

Brahimi expressed hope that "all parties are in favour of a solution that draws Syrian people together".

"Assad expressed his views on the situation and I told him about my meetings with leaders in the region and outside," said the veteran Algerian diplomat who took over the Syria role from former UN chief Kofi Annan.

Brahimi recently held talks with US and Russian officials, who hold differing views on how to deal with the Syrian crisis.

Washington has repeatedly called for the ouster of Assad, while Moscow still remains one of the few staunch supporters of the Damascus regime.

Brahimi had last visited the country on October 19.

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Aussies warned about Phuket scamsters

AUSTRALIAN tourists in Phuket should be wary of extortion gangs, some of which are in cahoots with local police.

Australian Ambassador James Wise and his British counterpart, Mark Kent, have joined a Thai Ministry of Tourism campaign to tackle tourist scams on Phuket.

Up to 25,000 Australians visit Phuket each month, with Christmas and New Year the peak of the tourism season.

The main scams involve taxi and jet-ski operators in Phuket and the seaside resort town of Pattaya.

Mr Wise told AAP travellers needed to be on their guard when they hired jet-skis or motorcycles.

"Consider the implications if it is stolen or damaged. Foreigners are commonly detained by police until compensation, often thousands of dollars, is negotiated between the parties."

Mr Kent said travellers should be cautious in "crowded markets, tourist sites, bus or train stations and festivals".

"It is best to avoid isolated neighbourhoods, shortcuts, narrow alleys and poorly lit streets, especially late at night," he said.

Larry Cunningham, Australia's honorary consul in Phuket, said scams and criminality had increased to such an extent that expatriates wanted to leave the island.

Mr Cunningham said young travellers were specially targeted by gangs and on occasion by local police.

In one incident, a young Australian man was involved in a minor traffic accident when riding a rental bike. He was told by police an injured man's condition was serious and was forced to pay thousands of dollars in compensation.

An investigation found the Thai man had minor injuries.

Mr Wise said travellers should have comprehensive insurance before setting off from Australia.

"If you can't afford travel insurance, you can't afford to travel. Medical costs in Thailand can run into many thousands of dollars," he said.

But even insurance may not be enough.

In June, a 27-year-old New Zealand man, Sean Kenzie, was badly injured in a motorbike accident. Despite paying for insurance before travelling, the coverage excluded medical expenses arising from motorbike accidents.

An appeal was called on to help him pay a $A20,000 medical bill for injuries including a split liver, punctured lungs, broken ribs, as well as surgery to reattach shoulder muscles and jaw bones.

Mr Cunningham was blunt: "Don't hire a motorbike - period."

Diplomats warned travellers never to hand over their passport as a guarantee to a hiring company.

"If a dispute arises, it can be extremely difficult or impossible to recover you passport until compensation is settled," Mr Wise said.

Lutzi Matzig, managing director of Indochina tour operator Asian Trails, says a concern in Phuket is overcharging by taxis.

"The local taxi mafia who grossly overcharge the tourists - charging them 500 baht ($A16) for a trip which should cost 20 baht or 50 baht ($A0.65 to $A1.60). The local taxi mafia is pretty bad in Phuket," Mr Matzig said.

Australians have also been warned to be cautious about attending full moon parties where criminals and corrupt police prey on young travellers.

"Australians have been arrested, assaulted, raped, injured or died as a result of incidents at full moon parties, often because they have drunk too much, taken drugs or had their drinks spiked," Mr Wise said.

In 2011 ,the Australian Department of Foreign Affairs and Trade (DFAT) reported 69 deaths in Thailand.

Reports say an average of 50 Australians die each year in Phuket due to natural causes, traffic accidents and accidental drug overdoses.

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Afghanistan Taliban pair pledge tolerance

Taliban have held talks with Afghan government officials at a landmark meeting in France. Source: AAP

TWO senior Taliban representatives have pledged to accept a multiparty political system and respect women's rights in future post-war governments.

The officials last week attended a two-day conference in Paris with Afghan parliamentarians, opposition leaders and government officials organised by a research institute.

In a declaration made public after the conference, they promised political tolerance, but criticised Kabul and the United States government for not being serious about their peace efforts.

They also called for a new constitution based on "the Islamic principles, national interests, social justice, and historical gains".

Such a charter would "guarantee, without prejudice, equal rights for all ethnic groups".

The rebels said they did not accept the current constitution because it was "written under the pressure of B-52 war planes" in 2004.

In a conciliatory note, the movement said it was not "seeking an exclusive right to power".

"We want an all-Afghan, inclusive government," the statement said, adding that Taliban leader Mullah Omar "respects his opponents and insists on mutual understanding and asks them to join him in defending the country."

The Taliban also claimed they would respect "women's rights" and the role that "Islam has given them."

"A woman in Islam has the right to get married, inherit, own (possessions), education, and work."

The former Taliban regime, which was ousted by the US-led military invasion in 2001, called the country the Islamic Emirate of Afghanistan. Its leaders say they continue to be "a legitimate force."

"It has a political representation in the world and our invitation to this conference is a good example of our political existence," the group said.

The Taliban want direct talks with the US, and have refused to talk with the Afghan government, which it regards as a "puppet administration."

"Foreigners and the Kabul administration are not interested in peace," it said. "Nor are they committed to the goals and principles of peace.

"Indeed, under the pretext of peace they want the mujahideen (militants) to surrender, lay down their weapons, accept the constitution, and obey their orders. Is that what you call a peace process?"

The Taliban insist that an end to all foreign military occupation remains a prerequisite for peace.

The officials praised France for taking steps to withdraw its troops, and called on the US and other allies to "withdraw" immediately.

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Muslims reject anti-Christmas message

MUSLIM leaders have been quick to reject an anti-Christmas message posted on the Lakemba Mosque Facebook page, saying it gives people the wrong impression.

The Lakemba Mosque Facebook page became the target of angry responses on Sunday, after it posted a "fatwa" on the social networking site saying it was a "sin" to offer Merry Christmas wishes.

The post followed a lecture during the mosque's Friday prayers in Sydney's west in which the head imam, Sheikh Yahya Safi, said followers should not take part in anything to do with Christmas, Fairfax reported.

The mosque's Facebook Page was hit with more than 100 posts, including numerous sarcastic "Merry Christmas and Happy New Year".

One Facebook user, Doug Barclay, wrote: "How do I issue a fatwa against the Easter Bunny?", while another, Brett Rann, said: "Don't pretend Islam is tolerant of other religions".

By Sunday night the feed had been deleted from the page.

Islamic Friendship Association spokesman Keysar Trad said the Lakemba Mosque post was damaging.

"When I saw it I was quite shocked ... It just gives people the wrong impression," he told AAP on Sunday.

"I'm happy that they are not sticking by those comments and that they are distancing themselves from them," he said.

Samier Dandan, the president of the Lebanese Muslim Association told ABC television the Facebook post was a mistake by a youth officer.

"We have given him a warning," he said.

The association says it arranged for a Christmas message to be written in the sky above the country's biggest mosque in response.

Looking back on the year, Mr Trad said there had been some highs and lows.

Among the lows was the violent September protest at Hyde Park in Sydney against an anti-Islamic film which resulted in 11 arrests, he said.

However, a high point came earlier this month, with Alan Jones apologising on-air for saying in April 2005 that Lebanese men were "vermin" and "mongrels".

Mr Trad said he was optimistic about 2013 and hoped Muslims and non-Muslims could create a "relationship based on mutual respect and cooperation".

"I think that is the only way forward for us as a nation."

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The original Wiggles woo Carols crowd

THOUSANDS of arms and legs waved and flailed at Sydney's Carols in the Domain, as the original members of The Wiggles celebrated their last carols bonanza.

More than 50,000 people packed into the Domain on Saturday, as the popular annual event ushered in the Christmas cheer with The Ten Tenor's rendition of O Come All Ye Faithful at 8.30pm (AEDT).

But the cheers really kicked off when Australia's most loved children's music group said their final goodbye to the event.

"Three of the members are hanging up their skivvies so tonight is their very last television performance before handing over to new band members," the Carols co-host Natalie Barr said.

"So this is it Australia, the end of an era," Matt White said.

The crowd jumped to their feet, shooting out arms and legs in unison with the original Red, Yellow, Red, Purple and Blue wiggles as they sang and danced to "Fruit salad", "Hot Potato" and "Jingle Bells".

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Govt approves The Block redevelopment

The government has granted planning approval for the redevelopment of The Block in Redfern. Source: AAP

THE redevelopment of The Block in the Sydney suburb of Redfern is one step closer after the state government granted planning approval.

NSW Premier Barry O'Farrell said on Saturday that the Department of Planning and Infrastructure had approved the Pemulwuy redevelopment project in the inner-city suburb.

Mr O'Farrell said Pemulwuy would include 62 affordable houses, a 42-unit student housing complex, a gym, a child-care centre and a community gallery, as well as open space.

He said there would also be shops and a 115-space underground car park.

"The approval of this project by the Department of Planning and Infrastructure will allow for the creation of a vibrant new housing, community and cultural precinct close to transport and the University of Sydney," Mr O'Farrell said in a statement.

"This part of Sydney has been crying out for renewal for many years and it is fantastic this long-running issue has now been resolved."

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Fire warning for WA's Pilbara

WA emergency crews are warning residents in the state's Pilbara region to brace for severe fire danger, with the day set to bring a mid-40C scorcher.

The 6000-strong inland residents of the region's Shire of Ashburton face hot, dry, windy conditions on Sunday that could see a potential bush or grass fire take hold, the Department of Fire and Emergency Services (DFES) said on Saturday.

The area faces overnight lows in mid to high 20s before daytime maximums expected in the low to mid 40s, with the scorching days tipped to continue until Boxing Day, according to the Bureau of Meteorology (BOM).

DFES urged residents to have bushfire plans and survival kits on standby, and to tune in to local radio and other media for updates.

"Do not wait for a warning before you act. If you see flames call triple zero," it said in a statement.

DFES has also issued a total fire ban on Sunday for the Shire of Exmouth, home to around 2600 residents in the coastal Gascoyne region, about 1000km north of Perth.

All open air fires are banned, and hot work such as metal welding and grinding is not allowed without an exemption, the department says.

"You could be fined up to $25,000 or jailed for 12 months or both if you ignore the total fire ban," DFES said in a statement around 6pm (WST).

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Remains of missing Victorian man found

HUMAN remains have been uncovered in a search of a Bellarine Peninsula backyard connected to the suspicious disappearance of father-of-five Douglas Kally.

Homicide Squad detectives, who earlier on Friday arrested and interviewed a 43-year-old woman over Mr Kally's disappearance four years ago, uncovered the remains several hours later.

They say they have not yet identified the remains, which were found following two days of digging up a residential backyard at Indented Head, southwest of Melbourne, which is understood to be Mr Kally's last known address.

Mr Kally, also known as Dragon Dordevic, was reported missing by his family in October 2008, having told them he was moving to NSW.

The 48-year-old's last reported sighting was by co-workers in July or August that year, and police regarded the disappearance as suspicious.

Police and State Emergency Service crews on Thursday began searching Indented Head and set up an information caravan in the town.

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Call for royal commission into Customs

IF Australian Customs officials are found to have been corrupt, the government has "no option" but to hold a commission of inquiry or a royal commission into the matter, a former police officer says.

Ross Fusca, a former Australian Federal Police (AFP) officer, worked on a taskforce in Melbourne in 2004, created to tackle corruption on the city's docks.

Despite a number of "major" drug busts, his requests a year later to have the taskforce continued was denied because of a lack of funding, ABC Television's 7.30 program reported on Friday.

Mr Fusca said it meant that agencies were no longer working together "with a common goal".

"But organised crime was and they weren't being kept in check," Mr Fusca told the ABC.

"If there is an issue with law enforcement at points of entry into this country that are allowing criminal groups to become stronger and more powerful, the Australian government has no option but to throw a commission of inquiry or a royal commission behind it and get to the bottom of it," he said.

It emerged on Thursday that two Customs officers, a quarantine officer and five members of the public have been charged following a joint investigation by law enforcement agencies into corruption and drug smuggling at Sydney airport.

Following the revelations Home Affairs Minister Jason Clare announced on Thursday the establishment of a Customs Reform Board to provide advice on how to further tackle corruption in the service.

Opposition customs and border protection spokesman Michael Keenan told the ABC on Friday that before a royal commission took place the government would need to give a "full and frank explanation of what's going on".

"I think we need to do that before we look at having a third-party inquiry," Mr Keenan said.

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N Korea confirms arrest of US citizen

NORTH Korea has confirmed it arrested a US citizen in November, saying he had admitted to unspecified charges and suggesting he would be formally prosecuted.

The man, identified as Pae Jun-Ho, entered North Korea on November 3 as a tourist, and "committed a crime" against the country, the official Korean Central News Agency (KCNA) said on Friday.

"He was put into custody by a relevant institution," it added.

The United States has no diplomatic ties with North Korea and KCNA said consular officials from the Swedish embassy, which acts on behalf of the US, had visited Pae on Friday.

"In the process of investigation, evidence proving that he committed a crime against the DPRK was revealed. He admitted his crime," the agency said in a short despatch.

"Legal actions are being taken against Pae in line with the criminal procedure law", it added, without elaborating.

The arrest was first reported earlier this month by a South Korean newspaper, Kookmin Ilbo, which had identified the detainee as a 44-year-old Korean-American tour operator.

The newspaper said he had been travelling with five other tourists and was detained when a computer hard disk was found among the group's belongings.

KCNA said Pae was arrested as he entered the north-eastern port city of Rason which lies inside a special economic zone near North Korea's border with Russia and China.

Several Americans have been held in North Korea in recent years.

In 2011, a US delegation led by Robert King, the US special envoy for Human Rights and Humanitarian Issues, secured the release of Eddie Jun Yong-Su, a California-based businessman, who had been detained for apparent missionary activities.

In 2010 former US president Jimmy Carter won plaudits when he negotiated the release of American national, Aijalon Mahli Gomes, sentenced to eight years of hard labour for illegally crossing into the North from China.

On another mercy mission a year earlier in 2009, former president Bill Clinton won the release of US television journalists Laura Ling and Euna Lee, jailed after wandering across the North Korean border with China.

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UN Rwanda court jails ex-minister

THE UN tribunal for Rwanda has handed a 35-year jail term to a former minister found guilty of genocide, in the court's final trial ruling.

Augustin Ngirabatware, planning minister at the time of the 1994 genocide, was found guilty of genocide, incitement to commit genocide and rape as a crime against humanity.

"For these crimes the court sentences you to 35 years in prison," the judge, William Hussein Sekule, told Ngirabatware on Thursday.

The tribunal still has appeals pending, but will wrap up its activities by the end of 2014.

Ngirabatware is the son-in-law of Felicien Kabuga, accused by the tribunal of having bankrolled the genocide, and the most notorious of the nine people indicted by the tribunal still at large.

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Jobs, growth are govt's priorities: Wong

FINANCE Minister Penny Wong says the government's focus is on jobs and economic growth after Treasurer Wayne Swan revealed a budget surplus is unlikely for 2012/13.

Mr Swan on Thursday said he'd rather ditch the surplus than tighten fiscal policy further and risk local jobs and growth.

"Obviously dramatically lower tax revenue now makes it unlikely that there will be a surplus in 2012/13," he told reporters in Canberra.

Senator Wong said she supported the decision.

"Today we have been very clear about that and we have made this decision to be clear about the state of revenue," she told ABC Television on Thursday.

"We have to put jobs and growth first."

In October, Treasury had forecast a $1.1 billion surplus for 2012/13, a turnaround from a $43.7 billion deficit the previous year.

Senator Wong said the government had downgraded revenue forecasts for this financial year by $20 billion since the 2010 budget projections.

The Finance Department's latest monthly statement released on Thursday showed cash receipts for 2012/13 so far totalled $111.6 billion at the end of October, down almost $4 billion on expectations.

The main factor was company tax revenue, hit by profit declines.

"With the release today of this new data, we have said to the Australian people ... we are seeing further revenue downgrades and it is not responsible to continue to make cuts to offset this revenue downgrade," she said.

The budget bottom line was being hit by a high Australian dollar and its impact on the terms of trade - the prices Australia receives for its exports compared to its imports, Senator Wong said.

"They are certainly having an effect on profitability and therefore our revenue," she said.

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Asian markets mixed, yen up

ASIAN markets mostly rose on Thursday following big gains in the previous session but investors are growing nervous that US leaders have still not agreed a deal to avert the fiscal cliff.

The yen slipped a tad against the euro and dollar after Japan's central bank unveiled more huge monetary easing but it held on to earlier gains as traders had mostly expected the new measures.

Tokyo fell 1.19 per cent on profit-taking after surging to an eight-month high on Wednesday. The index lost 121.07 points to 10,039.33 - a day after breaking the 10,000 barrier for the first time since early April.

Seoul closed 0.32 per cent higher, adding 6.41 points to 1999.50, with the election of conservative Park Geun-hye seeming to have little effect, although dealers were broadly happy as she favours stability over big change.

Sydney was up 0.35 per cent, or 16.3 points, at 4,634.1 and Hong Kong staged a late rally to end 0.16 per cent higher, adding 36.41 points to 22,659.78 while Shanghai gained 0.28 per cent, or 6.11 points, to 2,168.35.

With less than two weeks to go before the fiscal cliff of huge tax hikes and deep spending cuts is due to take effect, US politicians have still not reached a compromise budget deal to cut the nation's deficit with less painful measures.

President Barack Obama said on Wednesday he and the Republicans had narrowed differences to "a few hundred billion dollars". But a deal remains elusive.

Republicans are loath to raise taxes, while Democrats do not want to cut spending on programs such as Medicare.

House Speaker John Boehner, the Republican negotiating with the president, has said he is willing to extend tax breaks for everyone earning less than $1 million per year. Obama has said, however, he is willing to go no higher than $400,000.

Boehner announced on Wednesday that he will move to pass his measure, which he describes as his "Plan B", through the House Thursday but Obama warned he would veto the legislation.

"At some point there's got to be... a recognition on the part of my Republican friends that, you know, take the deal," Obama told reporters, as the two sides struggled to reach agreement.

While both sides have rejected the other's offers for a deal they said that talks are ongoing.

However, US traders were not impressed. On Wall Street the Dow finished 0.74 per cent lower, the S&P 500 dropped 0.76 per cent and the Nasdaq lost 0.33 per cent.

The Bank of Japan said Thursday it would expand an asset-buying program by 10 trillion yen ($US119 billion) to 101 trillion yen, days after the country's conservatives won an election promising to boost spending and pressure the bank for aggressive action.

It made no mention of a two-per cent inflation target demanded by incoming prime minister Shinzo Abe but said it would look at reviewing its policy.

The last scheduled policy meeting of the year had been widely seen as a test of whether it would stand pat, shrugging off the outside pressure.

However, it said the new measures were tied to fears about the slowing global economy, which was hurting growth at home.

The yen, which has tumbled against the dollar and euro in recent weeks on the expected victory for the opposition, picked up slightly in early trade on Thursday and managed to hold on to the gains after the BoJ move.

In early European trade the greenback bought 83.93 yen, compared with 84.39 yen in New York late Wednesday, while the euro was at 111.02 yen, from 111.59 yen.

The single currency also fetched $1.3228, against $1.3226.

Oil prices were lower, with New York's main contract, light sweet crude for delivery in February dropping 37 cents to $89.61 a barrel in the afternoon and Brent North Sea crude for February dipping 43 cents to $109.93.

Gold was at $1,668.30 at 1030 GMT (2130 AEDT) compared with $1,674.39 late on Wednesday.

In other markets:

- Singapore closed up 0.54 per cent, or 16.95 points, at 3,175.52.

Singapore Telecom rose 0.60 per cent to Sg$3.37 and DBS Group gained 0.54 per cent to Sg$14.99.

- Taipei fell 1.07 per cent, or 82.01 points, to 7,596.46.

Taiwan Semiconductor Manufacturing Co. was 1.34 per cent lower at Tw$96.0 while leading smartphone maker HTC rose 0.36 per cent to Tw$275.5.

- Manila added 0.79 per cent, or 45.35 points, to 5,797.74.

- Wellington ended 1.30 per cent higher, adding 52.45 points to 4,075.45.

Chorus surged 4.4 per cent to NZ$2.84, Fletcher Building rose 2.2 per cent to NZ$8.45 and Telecom gained 0.74 per cent to NZ$2.32 but Xero shed 1.3 per cent to NZ$7.60.

- Bangkok shed 0.07 per cent or 1.00 points to close at 1,377.40.

Coal producer Banpu fell 1.42 per cent or 6.00 baht to 418.00 baht while PTT Plc was unchanged at 333.00 baht.

- Jakarta ended down 21.04 points, or 0.49 per cent, at 4,254.82.

Carmaker Astra International fell 2.60 per cent to 7,500 rupiah, cigarette maker Gudang Garam lost 2.73 per cent to 57,000 rupiah, while palm oil producer Astra Agro Lestari decreased 1.62 per cent to 18,250 rupiah.

- Kuala Lumpur shares gained 4.96 points, or 0.30 per cent, to close at 1,670.60.

British American Tobacco added 1.7 per cent to 60.50 ringgit, DiGi.com rose 1.5 per cent to 5.36 and Axiata climbed 1.2 per cent to 6.68.

India's Sensex index slid 0.11 per cent or 22.08 points at 19,453.92 points, snapping two straight days of gains, on profit-taking in index heavyweights.

India's auto and tractor giant Mahindra and Mahindra fell 1.68 per cent to 951.7 rupees while IT outsourcer Wipro fell 1.32 per cent to 380.5.

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Malaysia provides refuge for 'Rohingyas'

MALAYSIA has provided refuge to 40 shipwreck survivors believed to be refugees from Myanmar's conflict-wracked Rakhine state, a Malaysian maritime official says.

The refugees arrived late on Tuesday in the southern state of Johor after they were picked up by a Malaysian Maritime Enforcement Agency vessel from a Vietnamese cargo ship off Singapore, the official said.

The 40 refugees were rescued by the cargo ship from a boat believed to be carrying 250 people that sank December 5 in the Bay of Bengal.

Many of those on board were still missing.

The official, who requested anonymity, said the refugees were believed to be from Myanmar's Rohingya minority.

All the refugees appeared to be in good health and were undergoing medical examinations, he said.

They were given temporary refuge while they are processed, he said.

Malaysia hosts about 24,000 refugees from Myanmar's Rakhine state, which has seen clashes between Muslim Rohingya and majority Buddhists.

At least 89 people were killed in the violence in October, and more than 5300 houses and religious buildings were burned or destroyed, according to UN figures.

More than 110,000 people have been forced from their homes since the violence first flared in June.

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French judges keep Strauss-Kahn charges

French judges have decided not to drop aggravated pimping charges against Dominique Strauss-Kahn. Source: AAP

FRENCH judges have decided not to drop aggravated pimping charges against Dominique Strauss-Kahn.

His lawyer says the former International Monetary Fund chief will appeal.

Strauss-Kahn's lawyers have argued the investigating judges in the case are biased.

The case revolves around a suspected luxury prostitution ring in northern France.

A court in the French city of Douai decided on Wednesday to retain the preliminary charges.

Strauss-Kahn's lawyers have said he attended "libertine" gatherings but didn't know some women present were paid.

The case is one part of an intercontinental legal saga that exposed Strauss-Kahn's active sex life and buried his French presidential ambitions.

Strauss-Kahn reached a settlement in the US last week with a hotel maid who accused of him of trying to rape her in May 2011.

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High turnout in S Korea presidential vote

HUGE crowds have voted in a tight presidential race pitting the son of North Korean refugees against the conservative daughter of an assassinated dictator, who both favour greater engagement with Pyongyang.

Despite freezing temperatures that hovered around -10 degrees Celsius, turnout was higher than in past elections.

South Koreans stood in long lines, wrapped in mufflers and parkas.

Seoul's election watchdog said turnout was about 59 per cent on Wednesday afternoon, which is 11 percentage points higher than five years ago, when current conservative President Lee Myung-bak won a landslide victory.

It is also five percentage points higher than a decade ago, when Moon's protege and former boss, liberal Roh Moo-hyun, won.

Exit polls give a tiny edge to conservative Park Geun-Hye, daughter of late dictator Park Chung-Hee, in her bid to be the country's first woman leader.

As polling booths closed at 6pm (2000 AEDT), a joint exit poll by three TV stations gave Park 50.1 per cent of the vote, with 48.9 per cent for her liberal rival Moon Jae-In.

The lead of 1.2 per cent was inside the margin of error of plus or minus 0.8 per cent.

The eventual occupant of the presidential Blue House will have to deal with a belligerent North Korea, a slowing economy and soaring welfare costs in one of the world's most rapidly ageing societies.

At the headquarters of Park's ruling New Frontier Party, party members jumped up and cheered as the exit polls were flashed on TV monitors, but there was no concession or claim of victory by either side.

"We're pleased," said Kwon Young-Se, one of Park's top campaign staff.

"Exit polls are still preliminary results, so we will watch with a humble mind until all the votes are counted."

Optimistic Park supporters gathered outside her residence south of Seoul, cheering and waving the South Korean flag.

"The polls showed we were slightly behind, but we still see a ray of hope because it's within the margin of error," said Jin Sung-Mee, spokeswoman for Moon's main opposition Democratic United Party.

Park, 60, was looking to make history not just as the first female president of a still male-dominated country, but also the first to be related to a former leader.

Her father Park Chung-Hee remains one of the country's most polarising figures - admired for dragging the country out of poverty and reviled for his ruthless suppression of dissent during 18 years of military rule.

He was shot dead by his spy chief in 1979.

Park's mother had been killed five years earlier by a pro-North Korea gunman aiming for her father.

Moon, the son of North Korean refugees and a former chief of staff to the late president Roh Moo-Hyun, is a former human rights lawyer who was once jailed for protesting against the Park regime.

While both candidates signalled a desire for greater engagement with Pyongyang, Park's approach was far more cautious than Moon's promise to resume aid without preconditions and seek an early summit with North Korean leader Kim Jong-Un.

The never-married Park had promised a strong, parental style of leadership that would steer the country through the challenges of global economic troubles.

"Like a mother who dedicates her life to her family, I will become the president who takes care of the lives of each one of you," she said in her last televised news conference on Tuesday.

A female president would be a big change for a country that the World Economic Forum recently ranked 108th out of 135 countries in terms of gender equality.

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Hong Kong stocks end flat

HONG Kong shares have finished flat as an afternoon sell-off wiped out earlier gains despite growing hopes of a deal in Washington to avert the US fiscal cliff.

The benchmark Hang Seng Index on Tuesday eased 18.88 points to close at 22,494.73 on a huge turnover of HK$118.22 billion ($A14.52 billion), thanks to trade in AIA after American International Group sold its final stake in the Asian insurer.

The market spent most of the day in positive territory, in line with a regional rally, after US President Barack Obama and top Republican lawmaker John Boehner met in the White House for 45 minutes on Monday.

The talks were the latest effort to avert the fiscal cliff of tax hikes and spending cuts and follow news Boehner had changed his position on not allowing any more taxes.

He said at the weekend that he would agree to some hikes for people earning more than $US1 million.

Wall Street ended on a high, with the Dow closing up 0.76 per cent, the S&P 500 gaining 1.19 per cent and the Nasdaq adding 1.32 per cent.

The HSI was weighed down by a 3.3 per cent fall to $HK30.60 in AIA after the AIG sale, which fetched $US6.45 billion ($A6.14 billion). However, the firm still managed to finish above the $HK30.30 price at which AIG sold.

China Overseas Land fell 1.9 per cent to $HK22.95 but is still up 76.8 per cent for the year to date. China Resources Land slid 1.9 per cent to $HK19.96.

Chinese shares ended up 0.10 per cent, extending their winning run to three days after leaders said they would push to increase domestic demand in the new year.

The benchmark Shanghai Composite Index added 2.12 points to 2,162.46 on turnover of 99.0 billion yuan ($A15.14 billion).

China "will continue to implement the proactive fiscal policy and prudent monetary policy in 2013" and make domestic demand a top priority, the new leadership said at a key economic conference at the weekend.

Soochow Securities analyst Deng Wenyuan told Dow Jones Newswires: "One of the major drivers for China shares are expectations for macro policy easing."

However, he cautioned: "I think investors might have been too optimistic about that," adding aggressive monetary easing is unlikely given still-high property prices.

Rising Nonferrous Metals surged by its 10 per cent daily limit to 47.55 yuan, Baotou Steel Rare Earth jumped 5.05 per cent to 36.17 yuan and Xiamen Tungsten rose 2.48 per cent to 36.72 yuan.

Qinling Cement also soared by 10 per cent to 6.88 yuan while Taiyuan Lionhead Cement gained 4.94 per cent to 5.31 yuan.

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