LONDON - The UK's leading share index drifted 0.43 percent lower, buckling under concerns over the outlook for inflation, but as ICI surged after rejecting an approach from Dutch group Akzo Nobel NV.

The FTSE 100 ended down 28.9 points at 6,703.5, having earlier touched its highest point since September 2000 and after a stellar rally at the end of the last week.ROUNDUP:EUROFIRSTEUROPE - European shares fell, with broad losses offsetting a few big gainers such as chemicals group ICI and telecommunications equipment maker Ericsson.

The performance of leading national indexes diverged, ranging from a 0.1 percent rise for Germany's top-30 DAX to a one percent fall for Spain's Ibex-35.

Morgan Stanley said it was still upbeat on European equities but warned of temporary setbacks. "This is still a bull market, as bull markets run from one recession to the next," the US investment bank said, adding: "For the next three to six months, we expect a pause in the ongoing bull market, with possibly a significant correction."

The FTSEurofirst 300 index of top European shares ended at 1,619.93 points, a loss of 0.37 percent, after earlier hitting 1,630.69, its highest since November 17, 2000.ROUNDUP:EUROmarketsFRANKFURT - The DAX index ended at 8,036.12 points, up 5.48 or 0.07 percent.

PARIS - The CAC-40 index closed at 6,087.15 points, down 18.13 or 0.30 percent.

ZURICH - The Swiss market index closed at 9,365.73 points, down 30.02 or 0.32 percent.

MILAN - The All Share Mibtel index closed at 33,366 points, down 233 or 0.69 percent.ROUNDUP:nikkeiTOKYO - The Nikkei average rose 0.99 percent to end at its highest in nearly four months as Canon hit an all-time high on a softer yen and property stocks gained after the central bank governor suggested no rate hikes were imminent.

The Nikkei advanced 178.03 points to 18,149.52, the highest close since February 26.ROUNDUP:hang sengHONG KONG - Blue chips and Hong Kong-listed China plays struck record closing highs, tracking robust regional markets, and lifted by a soaring China Mobile which set an all-time peak.

The benchmark Hang Seng Index rose 565.84 points, or 2.69 percent, to a record close of 21,582.89.ROUNDUP:asxSYDNEY - Shares rose 0.79 percent with sentiment lifted by a rally in US stocks after tame consumer price data soothed inflation worries, while stronger metal prices boosted mining stocks. The benchmark S&P/ASX 200 index added 49.6 points to close at 6,343.4.ROUNDUP:south africaJOHANNESBURG - Volatile shares see-sawed before closing weaker, undermined by index heavyweights BHP Billiton and Anglo American, which fell on the back of a firmer rand currency. The All-share index closed at 29,318.59 points, up 4.81 or 0.02 percent. The All Gold index closed at 2,611.59 points, down 2.65 or 0.10 percent, while the Industrial index closed at 19,842.65 points, up 50.3 or 0.25 percent.