Asian stocks mixed on Europe debt fears

Hong Kong's Hang Seng was down 0.6% - again after an earlier, larger fall.

South Korea's Kospi was up 0.62%, reversing an earlier decline of close to 4%. And Australia's ASX index also recouped earlier losses.

Analysts said that investors were trying to juggle a number of contradictory economic indicators, adding that markets were likely to remain choppy in coming sessions.

Asian markets saw a sell-off in early trading, which was triggered by rumours that France may become the next country to lose its triple A credit rating.

Concerns about European debt issues have rocked the markets for some time now, though the fears have mainly been limited to smaller, so-called peripheral economies, such as Greece and Portugal.

However, analysts said the emergence of new worries that the region's biggest economies may also be vulnerable has fanned fears further.

"As the economies get larger, the chances to bail them out are going to get slimmer," said Andrew Robinson of Saxo Capital Markets.

On Wednesday, France's Cac share index ended down 5.5% despite the French government's assurance that its credit rating was not under threat.

While ratings agencies Moody's, Standard & Poor's and Fitch reaffirmed France's AAA credit rating, analysts said investors remained sceptical about the country's financial health and the stability of its banking sector.

Shares of French lender Societe Generale fell as much as 20% after it was forced to "categorically" deny it was under financial pressure. The shares ended 15% lower.

The uncertainty surrounding the US and European markets has seen investors shift their focus towards purchasing assets that are considered as offering greater protection from market volatility.

That has seen gold record its best rally in more than two years, and on Thursday in Asia it climbed above the $1,800 per ounce mark for the first time.

Analysts said that given the current global environment, the rise in gold is likely to continue.

Also on Wednesday, London's FTSE fell by 158 points to 5,007, taking £41bn off the value of the index. It has now lost almost 15% in the last nine trading sessions.

UK banking shares were also hit, with Barclays down 8.7%, Royal Bank of Scotland 7.3%, and HSBC 5.3%.

On Wall Street, the Dow Jones Industrial Average lost 4.6%, or 520.29 points to close at 10,719.48 in its fifth straight day with a rise or fall of more than 400 points.

New York's broader S&P 500 index fell 51.81 points, or 4.42%, to 1,120.72.