Asian stocks continued their falls on Thursday, despite a cautious recovery on Wall Street over night following remarks by Ben Bernanke, chairman of the Federal Reserve, that helped to calm nerves.

Tokyo extended losses into the third day as investors continued to unload exporters such as Toyota Motor on concerns over the US economy. The benchmark Nikkei 225 stock average finished the day 0.9 per cent lower at 17,453.51, after posting its biggest one day fall for eight months on Wednesday. The broader Topix slid 0.7 per cent to 1,740.11.