Uncertainty about the US financial system and some gloomy figures for US factory orders and unemployment drove Asia Pacific markets lower on Friday.

In Japan, the Nikkei 225 average closed below 11,000 for first time since May 2005 and the MSCI Asia Pacific index dropped by 1.9 per cent to 105.14 1.7 by late afternoon in Tokyo, near its lowest level since August 2005.