Markets flinch in face of MH17 disaster

Stocks have tumbled around the world as markets reacted to global uncertainty following the death of almost 300 people in the crash of Malaysia Airlines flight MH17.

The US dollar edged up with the Malaysian ringgit and Japanese yen slipping today.

The Malaysia Airlines share price dropped 18 per cent before stabilising on the Malaysian stock market.

However, Australian markets withstood the global trend to close slightly higher this afternoon.

Hong Kong stocks fell 0.45 per cent in the morning session, while the Tokyo market dropped 1.09 per cent.

The Nikkei 225 index slipped 167.71 points to 15,202.55 by the break while the Topix index of all first-section issues was down 0.85 percent, or 10.82 points, at 1,262.56.

MH17 was carrying 298 people from Amsterdam to Kuala Lumpur when it crashed, with US officials saying it was shot down. The plane was lost in eastern Ukraine where government forces are engaged in a fierce battle to quell a rebellion by pro-Russian insurgents.

The Nikkei's losses were triggered by "nothing but the crash", said Hirokazu Kabeya, senior strategist at Daiwa Securities. He added that business was also hit by soft buying sentiment ahead of a three-day weekend in Japan.

"We still don't know details of the incident but (market players) need to shun risks," Kabeya said.

On Wall Street the Dow fell 0.94 percent from Wednesday's record close, while the S&P 500 sank 1.18 percent and the Nasdaq was down 1.41 percent.

However, the Russia-Ukraine situation and the Gaza invasion aren't likely to negatively affect the (global) economy, according to Okasan Securities senior investment strategist Hideyuki Ishiguro.

Japan's two biggest airlines were lower by the break with All Nippon Airways (ANA) down 0.80 percent at 246 yen while Japan Airlines (JAL) fell 0.50 percent to 5,950 yen.

Both carriers said they do not operate flights over Ukrainian airspace.