US stocks fell more than 1 percent after a bearish analyst comment on semiconductor stocks pressured the technology sector, even as data showed no change in weekly jobless claims.

The Dow Jones industrial average is down 93.87 points, or 0.90 percent, at 10,332.44. The Standard & Poor's 500 Index falls 14.90 points, or 1.34 percent, at 1,094.90. The Nasdaq Composite Index declines 36.32 points, or 1.66 percent, at 2,156.82.

The pan-European FTSEurofirst 300 index of top shares fell 1.6 percent.

Japan's benchmark Nikkei share average fell 1.3 percent to a four-month closing low, with the nation's biggest bank Mitsubishi UFJ Financial Group sliding after announcing a massive fundraising.

MUFG fell 3.7 percent to 466 yen after saying on Wednesday it would raise US$11 billion to meet stricter capital rules, the latest in a wave of fundraising that has seen Japanese companies already raise $40 billion through issuing common stock and convertible bonds this year.

Shares fell in heavy volume, and exporters took a hit as the yen rose against the dollar and other currencies, with Honda Motor Co falling 3.5 percent to 2,740 yen.

The benchmark Nikkei fell 127.33 points to 9,549.47, its lowest close in four months.

The Nikkei fell earlier to a four-month intraday low of 9,496.07, edging down towards support at the 200-day moving average that now lies at 9,337.29.