Japan sees further market losses
Japan's Nikkei stock index continues to suffer, losing 5% in early trading, BBC reported.
News that electronics giant Sony had halved its full-year profit forecast spread gloom over the market.
Meanwhile, South Korea says growth in its economy, which has been battered by the current financial crisis, is at a four-year low.
Its Kospi benchmark share index fell 7.5% on Thursday to hit a three-year dip, and its currency, the won, has lost a third of its value this year.
In early trading on Friday, the Kospi dipped below 1,000 points for the first since in more than three years, before recovering slightly.
However, it is still down 4.7% on the day so far, having lost almost half its value so far this year.
Samsung, the South Korean electronics firm, has said that its third-quarter profits were down 44%, despite a rise in sales.
Former US Federal Reserve boss Alan Greenspan has warned the world is continuing to face a "once-in-a-century credit tsunami" which will have a severe impact on his country's economy.
Thursday was another volatile trading day on Wall Street after a slew of weak corporate earnings stoked fears of a United States recession.
The main Dow Jones index fell as low as 8,251 points before closing the day up 172 points or 2% at 8,691.
The technology-heavy Nasdaq in contrast lost 0.73% to close at 1,603.9 points.
Earlier London's FTSE 100 index closed 1.16% higher at 4087.8, while in Germany the Dax index ended up 1.12% and France's Cac 40 index was 0.38% higher.
It was the Dow's first rise in three days, and analysts suggested that it was due to higher oil prices, which boosted energy-related shares.
US light crude added $1.63 to reach $68.38 a barrel, after falling as low as $66.73 a barrel - its lowest point since June 2007.
The rise in oil prices followed comments by Chakib Khelil, the president of oil cartel Opec, who said member states had agreed in principle on cutting back oil production. However, the amount of cutbacks has yet to be agreed and will discussed at a meeting in Vienna later on Friday.