The Asian rout was led by the 225-stock Nikkei index on the Tokyo Stock Exchange. The index opened sharply lower on a series of negative developments in the United States, its main market, and never recovered.

The Nikkei lost 570 points, or 6.89 percent, and closed at 7,703.04, the first close below the 8,000 level since Oct. 28, Kyodo news service reported. The Dow Jones industrial average on Wednesday also closed less than the 8,000 level, the first time since March 2003 that happened.

Investors also were concerned about the uncertain fate of the Big Three U.S. automakers if the U.S. Congress refused bailout plan for them, Kyodo said.

Japan's exports fell sharply in October to leave the month with a trade deficit, the Finance Ministry said. The economy already is in a recession.

Hong Kong's Hang Seng Index fell 517 points, or 4.04 percent, and closed at 12,299.

South Korea's KOSPI was off nearly 7 percent while Australia's All Ordinaries index ended 4.3 percent lower.

Markets in Thailand, Singapore, Indonesia, Taiwan and India also were headed for a lower close.