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The yen initial advances against the euro also subsided. The single currency bought Y137.23 in Tokyo afternoon trade after sinking to Y136.72 earlier in the day.

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Philippine Long Distance Telephone eased 0.07 per cent to 3,028.00 pesos, SM Investments dropped 1.09 per cent to 774.00 pesos and SM Prime Holdings ended 1.63 per cent down at 15.74 pesos.

The US dollar took a hit Thursday in New York as traders moved into the yen, considered a safe hedge bet during times of political and economic uncertainty.

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Taipei was marginally lower, losing 7.27 points to 9,400.97.

Tokyo fell 1.00 per cent, or 154.55 points, to 15,215.71, Seoul eased 0.07 per cent or 1.48 points to 2,019.42, while in the afternoon Nike Shoes For Girls High Tops Hong Kong lost 0.28 per cent, or 66.08 points, to 23,454.7

Regional markets ended broadly lower with an Israeli ground offensive in Gaza adding to tensions but made back some ground from early lows.

MH17 was carrying 298 people from Amsterdam to Kuala Lumpur when it crashed in eastern Ukraine. US Vice President Joe Biden said the jet had been apparently "blown out of the sky", while officials said it had been hit by a surface to air missile.

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The euro was at $US1.3533 against $US1.3525.

On oil markets, US benchmark West Texas Intermediate for August delivery was up 53 US cents in morning trade at Nike Shoes Blue And Gray

Wellington edged down 3.46 points to 5,108.9.

Gold, also a safe haven, jumped to $US1,312.33 by 0840 GMT compared with $US1,302.90 late Thursday.

The UN Security Council has called an emergency session on Friday to discuss the disaster.

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´╗┐Asian stock market hit

On Friday in Asia it recovered a touch to sit at Y101.39 a tad up from Y101.17 in New York but still well down from Y101.51 in Tokyo earlier Thursday.

On Wall Street, the Dow fell 0.94 per cent from Wednesday record close, while the S 500 sank 1.18 per cent and the Nasdaq was down 1.41 per cent.

Airline stocks retreated, led by a slump in already under pressure Malaysia Airlines as the company faced up to its second major disaster in four months following Thursday tragedy that killed almost 300 people.

$US103.72 a barrel and Brent crude for September advanced 50 cents to $US108.39.

Asian markets were mostly lower on Friday after a Malaysia Airlines jet came down in battle wracked Ukraine, sparking geopolitical tensions and sending Wall Street tumbling as the US claimed the aircraft had been shot down.

However, Russian President Vladimir Putin said Ukraine bore responsibility for the crash, which came as Ukrainian forces battle pro Moscow insurgents in the east of the country.

"Tensions had been simmering but they came to the fore again. (Investors) can be so bold to push ahead with buying at this moment," he said.

Manila closed 0.21 per cent lower, giving up 14.29 points to 6,853.07.

Combined with the airline perennial losses, the MH370 debacle has pummelled its shares this year it has lost more than a third of its value since January 1 and sparked speculation over whether it may be sold off or restructured.

Ukraine government described the incident as a "terrorist act", while comments attributed to a pro Russia rebel chief suggested his men may have downed it by mistake, believing it was a Ukrainian army transport plane.

Malaysia Airlines fell by as much as 17.8 per cent on the news, which comes months after Flight MH370 went missing with hundreds on board in a remote part of the Indian Ocean. In afternoon trade shares were 11 per cent lower.

However, Shanghai gained 0.17 per cent, or 3.48 points, to 2,059.07.

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The downward move across markets was triggered by "nothing but the crash", said Hirokazu Kabeya, senior strategist at Daiwa Securities.

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The US dollar bought 3.196 Malaysian ringgit, up from 3.175 ringgit Thursday.

Friday sell off affected other airlines, with Japan JAL losing 0.7 per cent and ANA slipping 0.8 per cent. Hong Kong Cathay Pacific lost 0.7 per cent in the afternoon. Air New Zealand shed 2.5 per cent.

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know details of the incident but need to shun risks," he said, adding that sentiment would continue to be weighed down as investors watch developments.

Taiwan Semiconductor Manufacturing Co. fell 0.8 per cent to $Tw123.5 while smartphone maker HTC rose 2.94 per cent to $Tw140.0.

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