LONDON - ASIAN and European stock markets fell hard on Thursday, with Tokyo losing nearly seven per cent and European indices deep in the red after sharp overnight losses on Wall Street and amid a fresh wave of major job cuts.

'Equities look set to continue their slide after big falls on Wall Street were followed by a broad based sell-off across the Asian markets', said CMC Markets dealer Matt Buckland.

Isuzu Motors on Thursday said it would cut 1,400 jobs and slash domestic production by 10 per cent, the latest in a slew of layoffs by Japanese automakers to cope with a global economic slowdown.

French carmaker PSA Peugeot Citroen meanwhile announced plans to slash 2,700 jobs.

In London, the British maker of plane engines Rolls-Royce said it anticipated cutting between 1,500 and 2,000 jobs worldwide in 2009, or up to five per cent of its workforce.

Multi-nationals are announcing major job-cutting programmes on an almost daily basis as leading industrialised countries fall into recession and as the financial sector attempts a massive recovery after being hit by a credit crunch.

US bank Citigroup had on Monday said it was slashing a near-record 50,000 jobs worldwide.

Meanwhile the drive for an additional US$25 billion (S$38.2 billion) bailout for ailing American automakers, backed by Democrats in the US Congress, stalled on Wednesday as Republican lawmakers insisted the sector use funds from a previous bill.

Executives from General Motors, Ford and Chrysler have begged Congress for the multi-billion dollar loans and warned the industry faces a 'catastrophic collapse' if the lawmakers do not come to the rescue.

European markets fall
In early European stock market trading on Thursday, London showed a loss of 2.08 per cent as it fell beneath 4,000 points. Frankfurt shed 3.40 per cent and Paris dropped 3.35 per cent to below 3,000 points.

The continent's major indices had closed sharply lower on Wednesday, with losses of almost five per cent being recorded in London and Frankfurt.

On Thursday, Tokyo closed down a huge 6.89 per cent, Hong Kong shed 4.0 per cent, Seoul dived 6.7 per cent and Sydney slid 4.2 per cent.

'What I can see is that the distressed selling is continuing and at a greater rate than it has in the last three or four weeks', said Bell Potter senior adviser Stuart Smith.

'It's forced selling. There can be no other reason. The market's trying to find an absolute floor'.

KUALA LUMPUR
Malaysian share prices closed 1.4 per cent lower on Thursday on a sharp overnight decline in US stocks and weaker regional markets, dealers said.

The Kuala Lumpur Composite Index shed 12.33 points to close at 865.32.

Declining stocks outnumbered advancers 455 to 124 as investors took a step back.

The main index was tipped to move in a range of 850-880 on Friday.

'Selling pressure came from retail investors while some local funds took the opportunity to bargain hunt on weakness', one dealer told Dow Jones Newswires.

'However, the weaker ringgit encouraged investors to sell off foreign-fund favoured stocks', he added.

HONG KONG
Hong Kong share prices closed 4 per cent down on Thursday, tracking a steep fall on Wall Street and regional bourses, dealers said.

The benchmark Hang Seng Index was off 517.24 points at 12,298.56.

Turnover was 44.62 billion Hong Kong dollars (S$8.74 billion).

Developers were among the worst hit, as job cuts and a bleak economic outlook dampened the confidence of potential property investors. Sino Land plunged 8.01 per cent and Sun Hung Kai Properties dropped 4.97 per cent.

SHANGHAI
Chinese stocks ended mixed on Thursday, outperforming tumbling markets elsewhere in the region because of China's economic stimulus measures.

The Shanghai Composite Index, dragged down by weak banking shares, ended 1.67 per cent lower at 1,983.760 points, off a low of 1,956.734.

Gaining Shanghai stocks slightly outnumbered losers by 469 to 439. Turnover was active.

TOKYO
Japan's Nikkei stock index tumbled 6.89 per cent on Thursday after heavy losses on overseas markets and another raft of gloomy economic data.

The Nikkei dropped 570.18 points to end at 7,703.04, the lowest close in about three weeks. -- AFP, BERNAMA, THOMSON REUTERS