However, the extent of the sell-off and a turnaround in early European business led to late bargain hunting which eased some of the pressure and allowed a few markets to end the day slightly higher.

Overnight, the US Commerce Department announced new orders for durable goods fell 1.7 per cent in February, disappointing the market, while new home sales in February fell 1.8 per cent, the slowest pace since February 1995.

KUALA LUMPUR
Malaysian share prices closed 0.7 percent higher Thursday as bargain hunting on selected blue chips lifted the market, dealers said.

The Kuala Lumpur Composite Index closed up 8.61 points at 1,254.03, off a low of 1,230.33 on volume of 802 million shares valued at 1.5 billion ringgit while advancers led decliners 473 to 251.

HONG KONG
Hong Kong stocks recovered from early losses and ended firmer on Thursday, buoyed by strong earnings from Cheung Kong and Hutchison , but airlines were under pressure as oil prices rose.

The benchmark Hang Seng Index ended 0.21 per cent higher at 22,664.22 points.

The China Enterprises Index of Hong Kong-listed mainland companies , or H shares, finished down 0.26 per cent at 11,828.84.

SHANGHAI
Chinese share prices on Thursday plunged 5.42 per cent, the sharpest percentage decline in two months, amid fears about the impact of massive amounts of shares released into the market, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed down 195.36 points at 3,411.49 on turnover of 76.9 billion yuan (S$15 billion).

The Shanghai A-share Index was down 205.38 points or 5.43 per cent at 3,578.92 on turnover of 76.7 billion yuan.

The Shenzhen A-share Index lost 51.53 points or 4.25 per cent to 1,161.67 on turnover of 34.9 billion yuan.

TOKYO
Japan's Nikkei average fell 0.8 per cent on Thursday, with electronic parts maker TDK Corp plunging nearly 8 per cent on a newspaper report that it would possibly miss its earnings forecast.

Toyota Motor Co and other exporters lost ground on the firmer yen and concerns about a recession in the United States, a key destination for Asian exports.

Gains in oil and commodity prices boosted oil and gas field developer Inpex Holdings and gold and copper producer Sumitomo Metal Mining, helping cushion some of the market's fall.

The benchmark Nikkei average ended down 102.05 points at 12,604.58, well off the day's low of 12,475.88. The broader Topix index shed 0.9 per cent to 1,226.44. -- AFP, REUTERS