TOKYO (AP) -- Asian shares tumbled again Friday, with the Tokyo benchmark nose-diving 5.4 percent, as the region showed little sign of staging a recovery amid a global sell-off over U.S. credit fears. European stocks, meanwhile, were mixed in early trade.

The dollar's decline that worsened earnings prospects for Japanese companies added to the battering Tokyo's benchmark has been taking in recent sessions, sending the Nikkei 225 index crashing 874.81 points, or 5.4 percent, to close at 15,273.68, its lowest close in a year.

Hong Kong's blue chip Hang Seng Index fell 1.4 percent , and the Korea Composite Stock Price Index lost 3.2 percent after dropping 6.9 percent the previous session.

Singapore stocks ended slightly lower at the end of the trading day, with the benchmark Straits Times Index down by 21.5 points or 0.68 per cent to close at 3,130.7 points. Losers outweighed gainers 804 to 217.

SGX, Asia's third-largest listed bourse, in February halted its derivatives trading system for several hours after it encountered technical problems.

Investors pounced on bargains in afternoon trades after the benchmark STI fell below the psychological support level of 3,000 points.

DBS Group Holdings Ltd. led declines among the city's biggest companies by value. CapitaLand Ltd., the No. 1 developer, slid on speculation debt-market losses will sap liquidity and dent demand for new homes. Keppel Corp., the biggest builder of shallow-water oil rigs, slid after crude prices fell to a seven- week low.

An afternoon rally in some of this week's biggest losers helped the Straits Times Index recoup earlier losses of as much as 6 percent, as investors judged that recent declines were excessive. Oversea-Chinese Banking Corp. climbed from a six-month low.

Volume totalled 3.61 billion shares valued at 3.88 billion Singapore dollars (2.54 billion US). Losers led gainers 804 to 217, with 565 stocks unchanged.

The index is down 6.8 percent for the week and has fallen more than 15 percent from its all-time intra-day high of 3,688.58 reached on July 16.

In early European trade, Britain's FTSE is up 0.66 percent, France's CAC 40 index is up 0.39 percent and Germany's DAX is down 0.05 percent.

Some Asian markets tried to buck the regional trend with early bargain-hunting but quickly began falling as Tokyo's slide deepened throughout the day. Japanese shares, already weakened by the spreading U.S. loan crisis, were hit hard again by a strengthening yen.

"The fear factor has overtaken people," said Song Sen Wun, regional economist at CIMB-GK Research Pte. Ltd., adding that people could realize that the fears are overblown as quickly as Monday.

"Whether this is a case of blind panic remains to be seen," he said by telephone from Singapore.

Taiwan main stock benchmark fell 1.4 percent to a three-month low at 8,090.29. The Philippine 30-company stock index closed at a new low for the year, losing 2 percent to its lowest level since Dec. 27.

New Zealand's NZX-50 index shed 1.6 percent in a rush of selling in the last hour of trading. Shares closed lower, or were down in late trade, in Australia, China, India and Singapore. Only in Thailand was a benchmark index up in late trade.

Credit Suisse Chief Strategist Shinichi Ichikawa in Tokyo said any bad news ahead, such as a bank abroad faltering, could worsen the market jitters.

"The next couple of weeks will be a very tough time for global financial markets," he said.

Earlier Friday, Japan's central bank injected 1.2 trillion yen (US$10.5 billion; euro7.8 billion) into money markets -- the third injection this week and triple the amount it injected the day before -- in a bid to curb rises in key interest rates.

Central banks in the U.S., Europe, Australia and Japan have injected tens of billions of dollars into money markets since Aug. 9, when stocks tumbled because of worries over U.S. subprime mortgage problems. So, far the extra money, meant to ease concerns about a credit crunch, has been unable to end the global sell-off.

In Japan, a further fall of the dollar against the yen led stocks lower. A weak dollar hurts Japan's giant exporters like Toyota Motor Corp. and Sony Corp. by reducing the value of their overseas earnings when converted into yen. A weak dollar also makes Japanese exports more expensive abroad.

The dollar was trading at 112.66 yen late afternoon, down from 113.11 yen late Thursday in New York. During the day it dropped as low as 111.80, the lowest level since June 2006.

The Japanese yen has gained sharply this week as investors buy the currency to pay back low-interest yen loans they had used to invest in emerging markets.

The Dow Jones industrial average Thursday closed down just 16 points after falling more than 340 points during the day, pulling off a dramatic late-session turnaround on massive bargain-hunting.