HONG KONG - Asian stocks tumbled Thursday as concerns about the worsening global economy played on investors, despite continued efforts by governments to ease the financial crisis.

Markets ignored signs that the credit crunch may be easing and focused on the risk of a global recession, which could hit company profits, lead to rising layoffs and cut consumer spending.

"The economy is likely to slump in the next few quarters so corporate profits should be squeezed. The fundamentals are quite negative still," said Tomoko Fujii, head of economics and strategy at Bank of America in Tokyo.

Hong Kong also pared early losses to finish 3.6 percent off at a three-year low, while Sydney closed 4.4 percent down, led by falling commodities and mining stocks.

Worst hit was Seoul, which shed 7.48 percent to a three-year low. Shanghai also gave up just over one percent, while Singapore tumbled 4.14 percent and Taipei eased back 2.72 percent.

The markets took their lead from Wall Street, where the Dow Jones slid 5.69 percent on recession worries, falling oil prices and a poor outlook for corporates.

European markets also fell heavily Wednesday as a blunt recession warning from British Prime Minister Gordon Brown cast a shadow over trading.

"We must now take action on the global financial recession which is likely to cause recession in America, France, Italy, Germany, Japan and - because no country can insulate itself from it Britain too," he told parliament.

Earlier the White House announced it would host a summit of the leaders of the Group of 20 rich and emerging nations on November 15 to try to coordinate efforts to bring an end to the global financial crisis.

Japan's Prime Minister Taro Aso had urged investors not to overreact, saying: "When it comes to stocks, you shouldn't be upbeat one day and fret the next.

"What's important is that companies whose stocks you own perform well on an operating level."

However electronics giant Sony Corp. issued a profit warning after the market close, saying net profits would more than halve this year due to a stronger yen and global economic slowdown.

Exporters were again battered as the yen rose further against the dollar and the euro. The Japanese currency held on to sharp gains against the greenback and was at 97.44 yen, while it was trading at 124.57 to the euro.

Data from Tokyo also showed Japan's trade surplus had plunged 94 percent in September from a year earlier, adding to fears its export-led recovery from recession in the 1990s has ground to a halt.

New Zealand shares lost 3.18 percent as a record one percentage point reduction in interest rates by the central bank failed to cheer investors.

Elsewhere, Manila finished 4.6 percent down and at a three-year low, while Jakarta gave up 3.1 percent and Kuala Lumpur lost 1.43 percent. Mumbai was 3.92 percent lower.

Bangkok was closed for a public holiday.

TOKYO: Japanese stocks closed 2.46 percent down. At one point the benchmark index dropped 7.59 percent to hit a level last seen in May 2003.

The broader Topix index of all-first section shares lost 17.53 points or 1.97 percent to end at 871.70.

Companies which rely heavily on Europe for business were among the worst hit. Mazda Motor slid 11 percent to 220 yen. Seiko Epson fell 5.8 percent to 1,775 yen and Sony dropped 6.3 percent to 2,295 yen.

Mizuho Financial lost 7.5 percent to 309,000 yen. Mitsubishi UFJ Financial dropped 6.3 percent to 725 yen while Sumitomo Mitsui Financial shed 4.2 percent to 484,000 yen.

HONG KONG: Shares closed 3.6 percent down. The benchmark Hang Seng Index fell 506.11 points to 13,760.49. Turnover was 56.46 billion Hong Kong dollars (7.24 billion US). It was the index's lowest close since May 27, 2005, when it ended at 13,714.78.

Energy and resources firms led the declines on concerns over a global slump in demand for metals and falling crude oil prices.

Oil producer CNOOC tumbled 8.1 percent, while PetroChina fell 5.1 percent.

Chalco shed 8.8 percent, after it said it plans to cut aluminium output by 18 percent due to weak demand and rising costs.

Sino Land dropped 5.3 percent.

Trading group Li & Fung plunged 12.27 percent as demand from the US and other crisis-hit economies continued to fall.

Citic Pacific rose 1.83 percent after news of potentially huge foreign exchange-related losses had dragged share prices down 66 percent from Monday to Wednesday.

SYDNEY: Australian share prices closed 4.4 percent lower. The market came close to three-year lows as it was battered by big losses in the resources and mining sector.

Australia's benchmark S&P/ASX 200 index dropped 181.7 points to close at 3,974.4, while the broader All Ordinaries fell 180.8 points, or 4.4 percent, to 3,939.3.

"The sustained pressure on commodities, based on indicators of global recession, will maintain pressure on our market because it?s highly slanted to commodity-based stocks," Macquarie Private Wealth senior private client adviser Marcus Droga said.

Copper fell 7.2 percent in Asian trading on the London Metals Exchange to a three-year low of 3,851 US dollars ? 57 percent less than four months ago.

Rio Tinto recorded one of the biggest losses of the day, slashing Wednesday's strong gains by dropping 14.6 percent to 66.95 Australian dollars.

BHP Billiton, which is aiming to take over Rio Tinto, was also down, losing 9.36 percent to 24.70.\

ANZ Banking Group dropped 5.21 percent to 18.01, while Commonwealth Bank of Australia fell 1.16 percent to 41.40.

SHANGHAI: Chinese share prices closed down 1.07 percent. Sentiment took another hefty blow after two Chinese railway companies announced foreign exchange losses of more than 300 million dollars, traders
said.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 20.26 points at 1,875.56 on turnover of 33.0 billion yuan (4.8 billion dollars).

The Shanghai A-share index fell 1.07 percent to 1,970.06 but the Shenzhen A-share index added 0.78 percent to 540.71.

China Merchants Bank shed 4.5 percent to 13.49 yuan and China Construction Bank dropped 3.9 percent to 4.0 yuan.

Aluminum Corp of China (Chalco) was down 1.32 percent at 6.71 yuan.

PetroChina fell 5.0 percent to 10.66 yuan and China Petroleum Chemical Corp (Sinopec) slipped 2.9 percent to 8.09 yuan.

China Railway Group dropped 5.9 percent to 4.75 yuan after announcing losses of 1.94 billion yuan on H-share listing proceeds held in foreign currency.

China Railway Construction Corp was down 3.0 percent at 8.14 yuan. It booked a 320 million yuan foreign exchange loss in the third quarter as a result of the yuan's appreciation.

TAIPEI: Taiwan share prices closed 2.72 percent lower.

The weighted index was off 132.08 points to 4,730.51 on turnover of 25.73 billion Taiwan dollars (779.7 million US).

Paper fell 3.43 percent, cement dropped 3.28 percent, financials lost 3.25 percent, construction was 3.23 percent lower, and the electronics sector was down 2.84 percent.

The market was also weighed down by the widespread poor corporate outlook and the weakness of the regional markets, he said.

"I'm afraid the (Taiwan) market is unlikely to rebound before the world's major markets stabilise."

Taiwan Semiconductor Manufacturing Co, the world's leading contract microchip maker, was at 41.15 dollars, and rival United Microelectronics Corp was at 8.67. Both were limit-down.

SEOUL: South Korean shares fell 7.48 percent.

The KOSPI stock index ended down 84.88 points at 1,049.71, its lowest since July 12, 2005. Volume was 394 million shares worth 5.28 trillion won (3.75 billion dollars).

The local currency hit a 10-year low against the dollar to close at 1,408.8 won to the US unit, down 45.8 won from Wednesday's finish.

The KOSPI declined 9.35 percent but recovered slightly mainly because the National Pension Service picked up shares.

Stock prices have now fallen about 45 percent this year.

Samsung Electronics dropped 6.99 percent to 472,500 won.

KB Financial Group, the holding company of Kookmin Bank, shed 4.42 percent to 36,800 won and Daewoo Engineering and Construction fell by the daily limit of 15 percent to 9,200 won.

Hyundai Motor gained 1.2 percent to 50,700 won despite its weaker third-quarter earnings.

SINGAPORE: Singapore shares closed 4.14 percent lower.

The main Straits Times Index tumbled 75.46 points to 1,745.67. Volume totalled 1.17 billion shares worth 1.22 billion Singapore dollars (818 million US).

With Singapore already in a technical recession, investors fear the worst for local companies if the global economy is stuck in a prolonged downturn, dealers said.

Singapore Airlines slumped 56 cents to 11.74, Singapore Telecommunications was off 19 cents to 2.28 and Neptune Orient Lines lost 13 cents to 1.16.

CapitaLand was steady at 2.77, City Developments gained six cents to 6.56 and Keppel Land dropped 12 cents to 1.68.

KUALA LUMPUR: Malaysian stocks closed 1.43 percent lower.

The Kuala Lumpur Composite Index shed 12.96 points to end the day at 891.32.

Gainers were led by Lion Industries up 4 sen to 0.54 ringgit while Public Bank gained 5 sen to 8.75 ringgit.

Plantation giant IOI Corp slipped 2 sen to 3.02 ringgit, while Sime Darby erased 10 sen to 6.25 ringgit.

JAKARTA: Indonesian shares tumbled 3.1 percent.

The Jakarta Composite Index slid 42.54 points to a two-year low of 1,337.20.

The main index has fallen 51 percent since the start of 2008.

Top decliners included cement maker Indocement, which fell 9.6 percent to 4,475 rupiah, while coal miner Indo Tambangraya dropped 9.6 percent to 9,000.

MANILA: Philippine share prices closed 4.6 percent down.

The composite index lost 97.09 points to 1,995.92 - the first time the main barometer has fallen below 2,000 points since October 28, 2005, when the index finished at 1960.22.

Philippine Long Distance Telephone was off 4.8 percent to 2,185 pesos.

San Miguel A fell 5.4 percent to 43.50 pesos while its B shares were down 6.4 percent to 44 pesos.

WELLINGTON: New Zealand share prices closed 3.18 percent lower.

The benchmark NZX-50 index fell 92.06 points to 2,807.34.

Market leader Telecom fell 18 cents to 2.26 dollars, Contact Energy dropped 29 cents to 7.02 and Fletcher Building lost 12 cents to 6.00.

Fisher & Paykel Healthcare shed seven cents to 3.10 and New Zealand Oil & Gas was down five cents at 1.18.

MUMBAI: Indian shares fell 3.92 percent.

The 30-share Sensex fell 398.2 points to 9,771.7, its lowest level since June 2006.