Comments from US Federal Reserve chairman Ben Bernanke that small US banks could collapse amid the ongoing subprime credit crisis also left their mark with Tokyo slumping 2.32 per cent and Sydney and Seoul each falling 1.4 per cent.

Oil soared to a record 103.05 dollars (S$143.6) per barrel on speculative trading while the greenback struck a fresh record of 1.5239 dollars against the Euro.

The US currency has fallen sharply in the last few days on increasing sentiment that the American economy could be set for a sharp slowdown and even recession and that the US Federal Reserve will reduce interest rates.

However, the prospect of lower US interest rates failed to halt the slide in Singapore which was down 1.55 per cent, Kuala Lumpur eased 0.80 per cent and Jakarta was down 1.3 per cent. Mumbai was down 1.38 per cent.

Among the greater China markets, Hong Kong was off 1.1 per cent while Taipei was down a milder 0.58 per cent, but Shanghai rose 1.14 percent.

Bangkok also bucked the broader trend and was up 0.43 per cent as the Thai central bank ditched the last of its currency controls imposed after the 2006 coup.

Improved corporate results lifted Manila by 0.6 percent.

KUALA LUMPUR
Malaysian share prices closed 0.8 per cent lower on Friday as cautious investors sold down on selected bluechips, dealers said.

The Kuala Lumpur Composite Index lost 10.87 points at 1,357.40.

HONG KONG
Hong Kong stocks fell on Friday amid rising risks of a US economic recession after unemployment claims jumped last week and the latest estimate of US economic activity confirmed growth was slow in the last quarter.

Global bank HSBC Holdings led the decline, as warnings of possible small bank failures by the US Federal Reserve chairman fanned the spectre of more write-offs across the banking sector.

The benchmark Hang Seng Index ended down 1.1 per cent at 24,331.67. The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, finished down 0.8 per cent at 13,931.88.

SHANGHAI
Chinese stocks climbed on Friday, led by large caps, as hundreds of billions of yuan locked up by China Railway Construction's initial public offer were returned to investors.

The Shanghai Composite Index ended up 1.14 per cent at 4,348.543 points, after touching a high of 4,364.814.

Gaining stocks in Shanghai outnumbered losers by 688 to 189, but turnover in Shanghai A shares was a thin 75.19 billion yuan ($14.8 billion), the lowest in ten days, against Thursday's 75.24 billion yuan.

TOKYO
Japanese share prices closed down 2.32 per cent on Friday as losses on Wall Street, a stronger yen and soaring oil prices unnerved investors, dealers said.

They said markets were rattled by downbeat comments from US Federal Reserve chairman Ben Bernanke, while a raft of Japanese data failed to ease market concerns about the health of the domestic economy.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 322.4 points to 13,603.02. The broader Topix index of all first-section shares lost 28.82 points or 2.13 per cent to 1,324.28. -- AFP, REUTERS