The Dow Jones share index in New York fell to its lowest level in five years, amid fears of a protracted global recession.

In Asia overnight Japan's Nikkei index ended 6.8% down and Hong Kong's main index fell 5.5%.

Data showing Japan's exports to Asia dropped in October for the first time since 2002 added to fears over the scale of the economic downturn.

On Wednesday, Wall Street shares fell 5% after the US central bank slashed its economic growth forecasts for 2009.

Car Makers
Carmakers were among the biggest fallers as the Dow Jones average closed down 427 points at 7,997 on Wednesday - dropping below the 8,000-level for the first time since 2003.

GM shares were down 15% at a 66-year low, while rival Ford slumped to a 26-year low.

Prospects for an industry bail-out remain uncertain and politicians have been arguing over a compromise deal.

Chief executives from General Motors, Ford and Chrysler say the firms could collapse unless they receive aid fast - which could lead to millions of job losses across the US.

But the automakers have faced fierce questions on Capitol Hill about their request for a $25bn (£16.6bn) bail-out deal.

Investors are concerned about how a possible bankruptcy among US carmakers could further hurt an already fragile economy.