HONG KONG - Asian stocks fell again Thursday but pared back early losses after the world's leading central banks joined together to flood the market with cash to put the brakes on the global financial crisis.

On a rollercoaster day the Japanese index closed 2.2 percent down after falling as low as 3.18 percent by noon, its lowest in three years, while Hong Kong finished flat following a dive to 7.4 percent.

Singapore also managed to bounce back from a noon plummet of 4.5 percent to end flat, while Shanghai closed just 1.72 percent off after being down more than six percent.

The BoJ later announced it had banded together with other major banks including the Fed and European Central Bank to pump world markets with hundreds of billions of dollars to stave off a feared financial meltdown.

Hong Kong was also helped by the local monetary authority injecting 1.56 billion Hong Kong dollars (200 million US) into the market.

Dealers started the day still nervous about the health of the global economy after Wall Street fell again on fears that more financial institutions could go the same way as US investment bank Lehman Brother which collapsed on Tuesday.

Investors had found no solace in the previous day's 85-billion-dollar bailout of insurer American International Group (AIG) by the US Federal Reserve.

Financial stocks took a battering as investors looked for shelter from the seemingly endless torrent of bad news. Gold finished 90 dollars higher.

The Wall Street Journal and New York Times reported that Morgan Stanley, whose stock fell to its lowest level since 1998, was mulling a merger with Wachovia, a US commercial bank.

However, traders saw bargains to be had and helped lift a number of indices.

In Asia's other major markets Taipei shed 2.74 percent after being off by 4.1 percent, while Sydney finished down 2.4 percent from a dip to 3.4 percent. Bangkok closed just 0.79 percent down after a noon tumble of 5.82 percent and Mumbai firmed by 0.4 percent after a five percent drop early on.

Seoul finished 2.3 percent off as traders ignored the news that the country will from next year be classified as a "developed market" from "advanced emerging".

In other markets Manila saw the biggest fall, shedding 4.25 percent, while New Zealand lost 3.51 percent and Kuala Lumpur was down 1.1 percent.

Jakarta was the only gainer, picking up one percent after a 3.2 percent fall mid-day.

TOKYO: Japanese share prices were down 2.22 percent, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index closed down 260.49 points to 11,489.30, rebounding from earlier lows, but still its lowest close since June 27, 2005.

The broader Topix index of all first-section shares fell 23.75 points or 2.12 percent to 1,097.68, sliding below the symbolic 1,100-point level.

Market psychology now has "people starting to mention names that they have never had grudges against and that is quite dangerous," Kitco gold analyst Jon Nadler told Dow Jones Newswires.

The Fed's decision to fail Lehman earlier this week will continue to "traumatise" investors for a long time, and their confidence in government in times of financial crisis is shaken, Investrust analyst Hiroyuki Fukunaga said.

Sumitomo Mitsui Financial Group lost 6.6 percent to 582,000 yen, after briefly falling to 564,000 yen, its lowest point since February 2004.

Sony shares flopped 8.7 percent to 3,270 after Goldman Sachs downgraded its shares, citing weakening global demand for LCD TVs, digital cameras and mobile phone handsets.

HONG KONG: Shares closed flat, dealers said.

The benchmark Hang Seng Index was off 0.03 percent, or 4.73 points, to 17,632.46, its lowest close since Oct 2006. Turnover was 103.23 billion Hong Kong dollars (13.12 billion US).

HSBC fell 0.2 percent, Hang Seng Bank was off 2.8 percent, and Bank of East Asia dropped 6.6 percent.

Some mainland banks bucked the trend. ICBC finished up 0.25 percent while Bank of Communications surged 1.82 percent.

Sun Hung Kai Financial strategist Castor Pang said the index may soon test 15,000 points.

ICEA Securities strategist Ernie Hon said the market was gripped by panic selling in the morning. Prices bounced back in the afternoon as bargain-hunters stepped in amid the liquidity moves, but Hon said investors remained nervous.

SYDNEY: Australian shares closed down 2.4 percent, dealers said.

The benchmark S&P/ASX 200 fell 114.9 points to 4,607.3, while the broader All Ordinaries lost 117.8 points to 4,651.9.

A total of 2.64 billion shares, valued at 11.19 billion (8.9 billion US), were traded, with 239 stocks up, 1,030 down and 237 unchanged.

Australia's biggest investment bank Macquarie Group was hard hit, with its shares plunging 7.88 dollars or 23.22 percent to 26.05, a five-year low.

National Australia Bank fell 1.10 or 5.31 percent to 19.60, Commonwealth Bank lost 1.02 or 2.48 percent to 40.08 and ANZ dropped 55 cents or 3.44 percent to 15.45.

Westpac lost 1.01 or 4.39 percent to 22.00 and its takeover target St George Bank fell 1.56 or 5.17 percent to 28.59.

Suncorp-Metway was off 51 cents or 5.76 percent at 8.35.

BHP Billiton was down 65 cents at 35.00 while Rio Tinto lost 3.60 to 98.40.

Gold miners were up. Newcrest jumped 3.11 or 14.54 percent to 24.50 and Newmont gained 49 cents or 9.84 percent to 5.47.

SHANGHAI: Chinese share prices closed 1.72 percent lower, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 33.21 points at 1,895.84.

"There is a rumour that the securities regulator may take some measures to support the market," Zhu Haibin, an analyst at Essence Securities, said.

China Citic Bank gained 6.7 percent to 4.48 yuan and Bank of China rose 2.4 percent to 3.04 yuan.

Dairy producers extend heavy losses from Wednesday despite apologising to consumers and pledging to recall all milk powder products tainted by the industrial chemical melamine.

Inner Mongolia Yili Industrial Group fell by the maximum daily limit of 10 percent for a second consecutive day to 10.88 yuan.

The Shanghai A-share index fell 1.71 percent to 1,900.90 points, while the Shenzhen A-share index lost 2.27 percent to 574.34.

TAIPEI: Taiwan shares closed 2.74 percent lower, dealers said.

The weighted index fell 158.92 points to 5,641.95 on turnover of 95.12 billion Taiwan dollars (2.96 billion US). Losers outnumbered gainers 1,460 to 303, with 311 stocks unchanged, while a total of 358 shares were limit-down, against 20 limit-up.

Construction plunged 6.7 percent, financials dived 6.6 percent, and textiles were down 5.3 percent.

The Taiwan dollar ended the morning session at 32.272 to the greenback, down "Fears are expected to weigh on the market for a while as prospects for the US financial sector are not likely to take a turn for the better any time soon," said Steven Huang of President Securities.

Taiwan Semiconductor Manufacturing Co was off 1.7 percent at 52 Taiwan dollars while United Microelectronics Corp fell 6.0 percent to 9.58.

SEOUL: South Korean shares closed 2.3 percent, dealers said.

The KOSPI index ended down 32.84 points at 1,392.42. Volume was 401.4 million shares worth 5.49 trillion won (4.79 billion dollars), with losers outpacing gainers 482 to 168.

South Korea's inclusion in the Financial Times Stock Exchange (FTSE) advanced market category did not seem to have a major impact on trading, as rumours of the announcement had been around for some time, Bae Young-Sung, an analyst at Hyundai Securities, told Yonhap news agency.

Top lender Kookmin Bank plunged 7.12 percent to 52,200 won and Woori Finance Holdings tumbled 9.91 percent to 11,950.

Tech, auto and other export-driven stocks were also hit. Samsung Electronics dropped 1.52 percent to 517,000.

The won closed sharply lower against the dollar at 1,153.3, down 37.3 won from Wednesday's finish.

SINGAPORE: Singapore shares closed flat, dealers said.

The blue-chip Straits Times Index closed 0.08 points lower at 2,419.21. Volume totalled 1.63 billion shares worth 2.11 billion Singapore dollars (1.47 billion US) with losers outpacing winners 379 to 211, while 757 issues were flat.

One dealer said investors were expected to remain pessimistic in light of the current turmoil, and immediate support for the Index was seen at 2,300.

CapitaLand fell 17 cents to 3.79 Singapore dollars, City Developments rose 14 cents to 9.00 and Keppel Land dropped eight cents to 3.11.

DBS fell two cents to 16.12, United Overseas Bank gained 22 cents to 16.72 and Oversea-Chinese Banking Corp was off two cents to 7.34.

Singapore Airlines surrendered 12 cents to 14.80.

KUALA LUMPUR: Malaysian share prices ended 1.1 percent lower, dealers said.

The Kuala Lumpur Composite Index fell 11.33 points to close at 991.66.

Maybank was flat at 6.90 ringgit while gaming giant Genting lost 1.24 percent to 4.76.

Telekom Malaysia was unchanged at 3.50 ringgit, while power giant Tenaga fell 3.85 percent at 6.25.

BANGKOK: Thai share prices closed 0.79 percent lower, dealers said.

The Stock Exchange of Thailand (SET) composite index lost 4.76 points to close at 600.38 points.

Top energy firm PTT was unchanged at 214.00, while its subsidiary PTT Exploration and Production rose 4.00 to 126.00.

Banpu, a major coal miner, gained 2.00 to 296.00.

Bangkok Bank edged up 0.50 to 100.00 and Kasikornbank rose 0.50 to 61.00.

JAKARTA: Indonesian shares ended up one percent, dealers said.

The Jakarta Composite Index added 17.78 points to 1,787.67.

The main index is down 17 percent since the start of September.

Top gainers included nickel miner Inco, which rose 20 percent to 2,975 rupiah. Palm oil producer London Sumatra gained 14 percent to 3,550.

MANILA: Philippine share prices plummeted 4.25 percent, dealers said.

The composite index fell 104.63 points to 2,352.37 points.

On the local front, "we are seeing a lot of foreign selling here. A lot of foreign investors are liquidating their investments in the Philippines," he said.

Banco de Oro Unibank bucked the trend to rise by 9.52 percent to 34.50 pesos.

Philippine Long Distance Telephone Co. fell 1.78 percent to 2,480 pesos while Ayala Land Inc. dropped 4.12 percent to 9.30 pesos.

San Miguel Corp. saw its A shares fall 3.09 percent to 47 pesos while its B shares fell 5.05 percent to 47 pesos.