A roundup of trading on major world markets:
NEW YORK - US stocks fell sharply on continued unease over emerging markets and a number of high-profile earnings disappointments.
At the closing bell on Friday, the Dow Jones Industrial Average sank 150.41 (0.94 per cent) to 15,698.20.
The broad-based S&P 500 fell 11.60 (0.65 per cent) to 1,782.59, while the tech-rich Nasdaq Composite Index lost 19.25 (0.47 per cent) at 4,103.88.
Anthony Conroy, head of global trading at Bank of New York Convergex Group, said Friday's losses were prompted by a confluence of factors, including some weak earnings reports and the sense of some investors that a correction was inevitable after the 2013 rise in stocks.
"The economy is probably okay," Conroy said. "I think the emerging markets are probably weaker than expected."
LONDON - European stock markets fell as solid economic growth in the US was offset by downbeat company earnings and emerging market concerns.
London's benchmark FTSE 100 index ended the day down 0.43 per cent at 6,510.44 points. Frankfurt's DAX 30 dropped 0.71 per cent to 9,306.48 points and the CAC 40 in Paris slid 0.34 per cent to 4,165.72 points.
Madrid lost 0.44 per cent while Milan edged up 0.03 per cent.
The euro fell to $US1.3503 from $US1.3554 late in New York.
HONG KONG - Tokyo fell in thin trade despite a pick-up in inflation last year and better-than-expected US growth data that helped soothe fears about emerging economies after a global sell-off this week.
Tokyo fell 0.62 per cent, giving up earlier gains. The Nikkei dropped 92.53 points to 14,914.53, extending heavy losses suffered on Thursday.
Sydney ended flat, edging up 1.9 points to 5,190.0 and Wellington added 0.51 per cent, or 24.74 points, to 4874.58.
Hong Kong, Shanghai, Seoul, Taipei, Jakarta, Kuala Lumpur, Manila and Singapore were closed.
Japan's fight against deflation had a boost after official data showed consumer prices rose 0.4 per cent last year, the first annual rise since 2008. The Bank of Japan has an ambitious target of 2.0 per cent inflation by mid-2015.
In another positive sign, separate data showed that spending by Japan's households was up last month as the nation's factories expanded their output, while the unemployment rate hit a six-year low.
WELLINGTON - The NZX 50 Index climbed 24.741 points, or 0.5 per cent, to 4874.583.