A worrying penchant for escapology has so far characterised Newcastle United's first adventure in the Champions League but unfortunately Kenny Dalglish's team had neither the class of Faustino Asprilla nor the luck normally associated with John Beresford's trusty left boot to help them here in the Philips Stadion last night.

Ultimately the Dutch champions, PSV Eindhoven were able to defend their first-half beauty from Wim Jonk all too comfortably. Not even the late, too late, introduction of Temur Ketsbaia, their saviour in Zagreb, could produce an equaliser that always seemed so far away.

Put simply, Newcastle lacked ambition against a team who compare most unfavourably in terms of individual skill and collective coherence with the dominant side in Group C, Dynamo Kiev.

The Ukrainians' comprehensive victory over Barcelona last night means they now have the initiative in the group while PSV's first win, and Newcastle's first defeat, leaves them level on four points, three behind Kiev.

When these two meet again at St James' Park on November 5th, Newcastle will be without the services of Robert Lee and David Batty, who last night both received their second booking of the competition.

Even more disappointing, however, was that Newcastle, even without Asprilla and Alan Shearer, could at least have taken the game to PSV but Dalglish is a tactical conservative and by playing the striker formerly known as Ian Rush alone up front his team never had any teeth.

When Ketsbaia did come on, in the 67th minute, he at once scared the Dutchmen by running at them, something only Keith Gillespie had done before, and it worked. Five minutes after replacing Beresford, the Georgian carved open PSV's defence, only to strike his 20-yard shot slightly too high. That was the closest Newcastle came to an equaliser all evening.

"The commitment was great," said Dalglish. "I said beforehand that PSV could have had six points against Kiev and Barcelona; they are a good side. But the lads played better than in Kiev."

Such an attitude defined his team's approach. Despite the embarrassment of the 4-1 defeat at Leeds last Saturday, Dalglish persevered with the same defensive personnel, although he moved the furniture around. Steve Watson began in the unfamiliar position of left-back and Beresford played just in front of him.

The ploy was aimed at denying the Brazilian Vampeta room to manoeuvre. While it was successful, it did not account for Luc Nilis, whose persistent drifting from the middle to the right was the key feature of his team's win.

It was Nilis's activity on the right that, after a genteel opening by the Dutchmen, created the only goal. Newcastle had been fortunate to escape a penalty appeal when Darren Peacock appeared to handle, but in the 38th minute the Belgian international again collected the ball on Watson's left-hand touch-line.

Rather than dribbling as he had done to good effect before, Nilis floated the ball to his fellow striker Gilles de Bilde in Newcastle's area. With his back to goal, De Bilde chested the ball into the path of Jonk; it bounced awkwardly for the midfielder but he is a craftsman as much as a footballer and he contorted expertly to send a soaring volley beyond Shay Given.

Hitherto, Newcastle had only a shot from Gillespie to show that they were interested in more than a draw, but after half-time they had to chase goals. Gillespie, always the likeliest source of one, stung the palms of Ronald Waterreus but there was never the sense of urgency required to generate significant forward momentum.

Ketsbaia made a difference but the game was gone. Even when injuries are considered, the finger must be pointed at Newcastle's manager.

PSV Eindhoven: Waterreus, Vampeta, Stam, Numan, Jonk, Petrovic (Moller 81), Cocu, De Bilde, Nilis (Bruggink 80), Faber, Iwan (Stinga 62). Subs not used: Van Ede, Claudio, Temiukov. Booked: Iwan, Stam, Vampeta. Goals: Jonk 38.

Newcastle: Given, Barton (Albert 80), Beresford (Ketsbaia 67), Batty, Peacock, Howey, Lee, Rush, Tomasson, Gillespie, Watson. Subs not used: Hislop, Barnes, Hamilton, Hughes, Brayson. Booked: Peacock, Batty, Tomasson, Lee.

Referee: S Braschi (Italy).

Newcastle boss Kenny Dalglish put a brave face on his side's defeat and reckons they are still in a strong position to qualify for the quarter finals.

The Magpies play two of their remaining games at home and Dalglish said: "We've got four points, so we're not too unhappy with that, and we have played two games away from home.

"They (Eindhoven) have got to come to our place in a fortnight's time and we will see how it goes then."

Dalglish felt Newcastle had improved on their last Champions' League display - the 2-2 draw away to Dinamo Kiev.

"We were pleased with our players' effort, commitment and organisation and we were pleased with the performance - it was a better performance than that against Kiev.

"We looked good. Shay (Given) had a couple of saves to make but nothing outstanding.

"The first two games they played they could quite easily have had six points. May be they had some good fortune tonight that they haven't had before."

England midfielders David Batty and Rob Lee will miss the return tie against PSV on Tyneside on November 5th after picking up their second yellow cards of the competition last night.

But Dalglish added: "We will just have to do our best and handle the situation."

PSV coach Dick Advocaat was relieved that his side had chalked up their first Champions' League win of the campaign.

He said: "We needed to win tonight and were under a lot of pressure to do so."