By Peh Shing Huei, China Correspondent

BEIJING, CHINA: Prime Minister Lee Hsien Loong yesterday called for a measured response to the ongoing global financial crisis, cautioning against an over-reaction that might cause more alarm and uncertainty.

The financial authorities should keep in close contact, he added on the opening day of the Asia-Europe Meeting (Asem) in Beijing - a summit of 45 members, but seemingly with only one issue on their minds.

A statement issued after the leaders' meeting expressed their concern over the spreading malaise. But they struck an upbeat note by saying that with decisive and timely measures, they have 'full confidence' that the crisis can be overcome.

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