HONG KONG - ASIAN stocks fell again on Thursday but pared back early losses after the world's leading central banks joined together to flood the market with cash to put the brakes on the global financial crisis.

On a rollercoaster day the Japanese index closed 2.2 per cent down after falling as low as 3.18 per cent by noon, its lowest in three years, while Hong Kong finished flat following a dive to 7.4 per cent.

Singapore also managed to bounce back from a noon plummet of 4.5 per cent to end flat, while Shanghai closed just 1.72 per cent off after being down more than six per cent.

In Japan dealers were given a boost when the central bank injected 2.5 trillion yen (S$20.6 billion) into the market - that was on top of the 5.5 already handed over since Tuesday.

The BoJ later announced it had banded together with other major banks including the Fed and European Central Bank to pump world markets with hundreds of billions of dollars to stave off a feared financial meltdown.

Hong Kong was also helped by the local monetary authority injecting 1.56 billion Hong Kong dollars (S$285 million) into the market.

Dealers started the day still nervous about the health of the global economy after Wall Street fell again on fears that more financial institutions could go the same way as US investment bank Lehman Brother which collapsed on Tuesday.

Investors had found no solace in the previous day's 85-billion-dollar bailout of insurer American International Group (AIG) by the US Federal Reserve.

Financial stocks took a battering as investors looked for shelter from the seemingly endless torrent of bad news. Gold finished 90 dollars higher.

The Wall Street Journal and New York Times reported that Morgan Stanley, whose stock fell to its lowest level since 1998, was mulling a merger with Wachovia, a US commercial bank.

However, traders saw bargains to be had and helped lift a number of indices.

In Asia's other major markets Taipei shed 2.74 per cent after being off by 4.1 per cent, while Sydney finished down 2.4 per cent from a dip to 3.4 per cent.

Bangkok closed just 0.79 per cent down after a noon tumble of 5.82 per cent and Mumbai firmed by 0.4 per cent after a five per cent drop early on..

Seoul finished 2.3 per cent off as traders ignored the news that the country will from next year be classified as a 'developed market' from 'advanced emerging'.

In other markets Manila saw the biggest fall, shedding 4.25 per cent, while New Zealand lost 3.51 per cent and Kuala Lumpur was down 1.1 per cent.

Jakarta was the only gainer, picking up one per cent after a 3.2 per cent fall mid-day. -- AFP

SINGAPORE
Singapore shares closed flat on Thursday, recovering from heavy earlier losses but the overall mood remained bearish as investors worried about turbulence in global financial markets, dealers said.

The benchmark Straits Times Index closed 0.08 points lower at 2,419.21, recovering ground from a mid-day fall of 4.5 per cent.

Up to 1.63 billion shares exchanged hands.

Losers beat gainers 379 to 211.

KUALA LUMPUR
Malaysian share prices ended 1.1 per cent lower on Thursday following Wall Street's overnight plunge and continued political uncertainty in the country, dealers said.

The Kuala Lumpur Composite Index fell 11.33 points to close at 991.66.

HONG KONG
Hong Kong shares closed flat on Thursday, recovering from a 7.4 per cent morning dive, after top global central banks launched a coordinated effort to ease liquidity in the financial markets, dealers said.

The benchmark Hang Seng Index was off 0.03 per cent, or 4.73 points, to 17,632.46. Turnover was 103.23 billion Hong Kong dollars (S$18.79 billion).

ICBC finished up 0.25 per cent while Bank of Communications surged 1.82 percent.

The stocks were also boosted by the injection by the Hong Kong Monetary Authority of 1.56 billion dollars into the banking system on Thursday afternoon.

SHANGHAI
Chinese share prices closed 1.72 per cent lower on Thursday, ending a volatile day where a selloff in banks and insurers deepened on concerns over the turmoil in global markets, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 33.21 points at 1,895.84.

The Shanghai A-share index fell 34.70 points, or 1.71 per cent, to 1,900.90 points, while the Shenzhen A-share index lost 13.36 points, or 2.27 per cent, to 574.34.

TOKYO
Japanese share prices closed down 2.22 per cent on Thursday to a more than three year low as worries intensified about the health of the US financial sector, dealers said.

Asia's largest bourse was rattled by reports of trouble at more Wall Street titans including Morgan Stanley after Lehman Brothers' collapse, although the Tokyo market rebounded from early lows.

The Tokyo Stock Exchange's benchmark Nikkei-225 index closed down 260.49 points to 11,489.30, its lowest close since June 27, 2005.

The broader Topix index of all first-section shares fell 23.75 points or 2.12 per cent to 1,097.68, sliding below the symbolic 1,100-point level. -- AFP, BERNAMA, REUTERS