TOKYO, JAPAN - A MASSIVE sell-off on Wall Street and escalating fears of a global recession sent Asian stocks plunging on Friday, with Japan's benchmark index plunging more than 10 per cent.

'Selling is unstoppable in New York and Tokyo', said Mr Yutaka Miura, senior strategist at Shinko Securities in Tokyo. 'Investors were gripped by fear.'

Markets in Hong Kong, Australia, South Korea, Thailand and the Philippines were all down more than 7 per cent.

Shanghai's index was down 3.8 per cent.

Indonesian authorities suspended trading indefinitely on the Jakarta Stock Exchange after they had halted trading on Wednesday after the index plunged more than 10 per cent.

In Tokyo, news of Friday's developments left individual investors shellshocked.

Mr Kenji Akasaka, 69, president of a local printing company, said he had never seen it this bad in the 40 years he has traded stocks.

He said he invests mainly in blue-chips including Toyota Motor and Nintendo.

'I pray before I go to bed that the Dow will recover,' said Mr Akasaka, 69, as he scanned a monitor displaying the latest market levels. 'I get sleepless, thinking about losses.'

Japan's benchmark Nikkei 225 stock average plummeted 10.3 per cent to 8,217.50 in early afternoon trading and appeared headed for its second biggest one day loss ever.

The Tokyo bourse and the Osaka Securities Exchange briefly suspended some futures and options trading during the morning.

The regional sell-off follow a 7.3 per cent plunge in the Dow Jones industrial average on Thursday to close below the 9,000-line for the first time in five years.

Stocks nose-dived after a major credit-rating agency said it might cut its rating on General Motors and Ford Motor, further rattling investors already fretting over the impact of tight credit on the economy.

The Dow's seven-day decline of 20.9 per cent is the largest since the seven-day plunge ending Oct 26, 1987, when the Dow lost 23.8 per cent.

That sell-off included Black Monday, the Oct 19, 1987 market crash that saw the Dow fall nearly 23 per cent in a single day.

The sluggishness in the credit markets that triggered much of the heavy selling in markets around the world since mid-September appeared little changed even after a string of interest rate cuts by central banks in the US, Europe and Asia this week in an attempt to resuscitate lending.

'There's no bottom to the stock markets now', said Mr Francis Lun, general manager at Fulbright Securities in Hong Kong. 'There's no clue when it will stop.'

Analysts also said there's pressing need for the US to quickly implement the US$700 billion plan to buy up toxic mortgage-related securities from troubled banks and financial institutions that are at the core of problem.

In Japan, insolvencies in the insurance and real estate sectors accelerated the pessimism.

Mid-sized Yamato Life Insurance went bankrupt on Friday on losses related to global stock woes, while New City Investment Corp's bankruptcy filing made it Japan's first real-estate investment trust to fail.

Japanese Economy Minister Kaoru Yosano sought to reassure the country even as markets tumbled.

'We need to make sure that we don't get pulled too much by global tides,' Mr Yosano said. 'I hope investors Japan's makes decisions calmly based on Japan's economic fundamentals.'

Ms Lucinda Chan, associate director of Macquarie Equities in Sydney, called the market moves 'ghastly'.

'It is a very different and very unprecedented climate at the moment', she said. 'Growth is going to be a major concern in this market and that is why the Australian market is getting a very hard pinch because we are a commodity export nation.'

Asia's falls come as finance ministers and central bankers from the Group of Seven industrialised nations prepared to meet later on Friday in Washington.

'Investors are not so sure that the G7 will announce effective measures to contain the global financial crisis,' Mr Miura in Tokyo said.

In currencies, the dollar fell to 98.69 yen on Friday afternoon in Asia from 98.82 yen late Thursday. The euro stood at US$1.3548 from US$1.3560.

KUALA LUMPUR
At 12.30 pm today, there were 42 gainers, 616 losers and 106 counters traded unchanged on the Bursa Malaysia.

The KLCI was at 938.24 down 30.65 points, the FBM2BRD was at 4,638.71 down 176.59 points, and the FBMEmas was at 6,223.30 down 222.57 points.

Turnover was at 352.509 million shares valued at RM715.860 million (S$300.1 million).

BANGKOK
Thai share prices dropped 7.27 per cent as markets opened on Friday amid concerns about the global financial crisis and domestic turmoil from anti-government protests in Bangkok, dealers said.

SHANGHAI
Chinese share prices tumbled 3.81 per cent by midday on Friday following a new round of losses on US and European stock markets, dealers said.

Panic-stricken investors apparently shrugged off the latest efforts by securities regulators to boost the market, including share buyback measures, traders said.

'China shares may finally lose ground today, after having managed to stand against the assault of the global financial crisis for four sessions', Haitong Securities' analyst Zhang Qi told Dow Jones Newswires.

But analysts also added the downside of the market would be limited because investors have already accounted for most negative factors, including poor third quarter earnings.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 79.06 points at 1,995.52.

The key index remained higher than the close level on September 18th - when it hit a 22-month low of 1,895.84 - before a government package of market supporting measures sent shares soaring the following day.

The Shanghai A-share index fell 82.81 points, or 3.80 per cent, to 2,095.98, while the Shenzhen A-share index lost 31.02 points or 5.25 per cent to 560.10.

HONG KONG
Hong Kong share prices ended the morning down 7.0 per cent on Friday, as markets across Asia plummeted on worries about the stability of the global banking system, dealers said.

The Hang Seng Index ended the morning down 1,121.31 points at 14,821.93.

Turnover was 32.63 billion Hong Kong dollars (S$6.2 billion).

All 42 companies in the index were down in a broad sell-off, with even safe haven stocks such as power giant CLP dropping 8.8 per cent.

Citic Pacific, China Overseas, China Shenhua, Cosco Pacific (1199.HK) and Chalco all fell more than 10 per cent.

Despite the carnage, Phillip Asset Management's YK Chan said there are strong buy orders on the futures market for when the bourse drops to 14,600.

'I believe many players are betting on further government rescue measures during the weekend,' he told Dow Jones Newswires.

SEOUL
Seoul shares pared earlier 9 per cent losses to trade 4.3 per cent lower in late afternoon on Friday, as heads of South Korean brokerages met to propose setting up a market stabilisation fund, and as the won currency steadied.

The Korea Composite Stock Price Index was down 4.2 per cent to 1,240.43 points as of 0525 GMT (1.25pm Singapore time), up from the low of 1,178.51, a near three year-low.

TOKYO
Tokyo share prices plunged more than 10 per cent on Friday, the biggest loss in two decades as fears grew that global authorities are unable to control the mounting financial crisis.

Investors took fright at news that the worldwide meltdown has claimed its first victim among Japanese financial institutions with the bankruptcy of Yamato Life Insurance.

The Tokyo Stock Exchange's benchmark Nikkei-225 index dived 974.12 points or 10.64 per cent to 8,183.37 by the lunch break.

It was the largest fall since the October 1987 crash, surpassing Wednesday's plunge of 9.38 per cent.

Prime Minister Taro Aso warned that the slump could have real effects on Asia's largest economy.

The share price fall 'has reached a point where it affects the real economy and fund raising,' he told reporters.

Market watchers were not ruling out further losses.

'We are prepared to see the index drop below 8,000 any time', a general manager at a Japanese brokerage firm told Dow Jones Newswires.

As the panic grew, the Bank of Japan pumped 3.5 trillion yen (S$52.6 billion) into the money markets amid the turmoil in Tokyo, while the stock exchange briefly halted some trading in futures and options.

The dollar tumbled to 98.43 yen, down from 99.50 overnight in New York as investors fled risky assets.

MUMBAI
Indian shares plunged 7.92 per cent within minutes of opening on Friday, as fears grew that the mounting financial crisis could spiral out of control, dealers said.