Financial markets around the world were roiled on Thursday after Japanese stocks suffered their biggest slide since the country was hit by a devastating tsunami more than two years ago.

Global markets remained buoyant on Wednesday, a day after a number of indexes hit record highs, as many investors kept buying stocks following forecast-busting U.S. jobs figures.

Though expectations have diminished in recent days that the 27-nation EU will agree on the terms of a banking union, investors are keen to hear updates on the economic fate of Spain, as well as Greece, which appears to be near to securing its next batch of bailout cash.

World stock markets surged on Friday, boosted by a highly anticipated European plan to lower the borrowing costs of debt laden Spain and Italy.

Asian benchmarks recorded sharp losses earlier in the day. Japan's Nikkei 225 index dropped 1.1 per cent to close at 8,801.17, its lowest close since January 30.

Asian stocks also endured losses, although one notable exception was Japan, where the benchmark Nikkei 225 index rose 0.2 per cent to close at 8,973.84.

Hong Kong's Hang Seng fell 0.3 per cent to 21,249.53. South Korea's Kospi lost 0.2 per cent to 1,995.11. Australia's S&P/ASX 200 edged down 0.2 per cent to 4,429.

Japan's Nikkei 225 index fell to 9,464.71, South Korea's Kospi index slipped 0.4 per cent to 1,985.30 and Hong Kong's Hang Seng lost 0.2 per cent to 20,562.31.

Mainland Chinese shares saw their biggest loss in almost a month a day after Premier Wen Jiabao lowered the country's economic growth target to 7.5 per cent from 8 per cent.

Markets were optimistic on Monday that Greece will finally secure a massive but long-delayed international bailout, allowing the debt-crippled country to avoid defaulting on its debts next month.

Japan's Nikkei 225 index jumped 0.6 per cent to close at 8,999.18. Hong Kong's Hang Seng gained 0.5 per cent to 20,887.40 and South Korea's Kospi added 0.6 per cent.

In China, the benchmark Shanghai Composite Index jumped 4.2 per cent, the most in over two years. The Shenzhen Composite Index of China surged 5.1 per cent to 860.25.

Japan's Nikkei 225 index slid 1.4 per cent to close at 8,378.36 and Hong Kong's Hang Seng lost 1 per cent at 19,021.20. South Korea's Kospi dropped 0.9 per cent to 1,859.25.

By mid-morning, Germany's DAX gained 0.1 per cent to 6,167.64 and France's CAC-40 rose 0.6 per cent to 3,230.51. while Britain's FTSE 100 was flat at 5,695.42.

Japan's Nikkei 225 index, reopening after a three-day holiday weekend, added 0.4 per cent to close at 8,422.26. Hong Kong's Hang Seng index rose 0.7 per cent to 19,004.2.

European shares were mostly higher in early trading. Britain's FTSE 100 rose 0.3 per cent to 5,666.73. Germany's DAX rose 0.9 per cent to 6,063.44.

The stock benchmark fell sharply on Tuesday as slowing growth prospects continued to weigh on investor sentiments. The main 30-share BSE index closed at 15175.08, down 204 points while on the NSE, Nifty fell 68 points to finish at 4544.20.

Japan's Nikkei 225 fell 1.2 per cent to close at 8,552.81. South Korea's Kospi gave up 1.9 per cent to 1,864.06. Hong Kong's Hang Seng lost 0.7 per cent to 18,447.17.

The 30-scrip index of the Bombay Stock Exchange closed at 16,002.51 points, 132.16 points or 0.83 per cent up from its previous close.

Following losses in Asia and an early retreat in Europe, market concerns appear to have dissipated somewhat.