Tokyo  - Asian stocks fell sharply Friday on news of the collapse of a bailout plan for the US car industry and gloom over the effects of the US financial slump on Asian exporters.

In Japan, stocks dropped 5.56 per cent, ending a week of moderate gains.

The news of the US Senate's rejection of the latest car industry bail-out also led to the highest drop in the dollar against the yen for 13 years, dealing a further blow to Japanese exporters.

Frankfurt - European shares opened sharply down Friday after the failure of the US car industry bail-out sent stocks tumbling in Asia.

With shares in major European bourses falling in early trading, Europe's blue-chip Stoxx 50 opened down more than 4 per cent at 2,379.99 points.

This followed a 2.8-per-cent fall in shares in Europe's leading market in London and a more dramatic 3.8-per-cent slump in Frankfurt, where the failure of the rescue plan for the crisis-hit US car industry sparked big falls in key German car stocks.

Hong Kong - Hong Kong stocks fell almost 5.5 per cent Friday as markets across the Asian region reacted to the collapse of a US car industry bail-out plan.

Hong Kong-listed Chinese shares led the declines with losses approaching 7 per cent, spurred by disappointment over the lack of further stimulus measures from Beijing at a key annual economic conference that ended Wednesday.

The blue-chip Hang Seng Index closed down 855.51 points, or 5.48 per cent, at 14,758.39. Turnover was 58.7 billion Hong Kong dollars (7.57 billion US dollars).

Beijing - Shares in China's two stockmarkets plunged by nearly 4 per cent on Friday, following a regional fall prompted by the US Senate's failure to approve an emergency loan package for the auto industry.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, ended the day on 1,954.21, down 3.81 per cent, or 77.47 points.

The smaller Shenzhen Composite also lost nearly 4 per cent of its value, as the Shanghai Daily newspaper said investors were "taking profits due a gloomy economic outlook and fear of future losses."

Manila  - Philipine shares slipped 2.03 per cent on Friday tracking a fall on Wall Street over continued uncertainty over a rescue package for US carmakers.

Tokyo  - Stocks in Japan dropped in early trading Friday, dragged down by opposition to the US car industry bail-out plan by conservative lawmakers in the US Senate.

The benchmark Nikkei 225 Stock Average was down 110.31 points, or 1.27 per cent, to 8,610 at mid-trading, also affected by the yen strengthening against the dollar.

The broader Topix index of all first-section issues declined by 6.06 points, or 0.71 per cent, to 843,19.