Global shares drops on ECB disappointment

Global stocks tumbled on Thursday after the European Central Bank disappointed investors who were hoping for immediate action to combat the euro zone debt crisis.

The US Federal Reserve took a similar wait-and-see approach on Wednesday and did not announce any new stimulus measures to help revive a flagging US recovery. Data on Friday is expected to show the US economy added 100,000 jobs in July, not enough to lower an 8.2 percent jobless rate.

The Dow Jones industrial average closed down 92.18 points, or 0.71 percent, at 12,878.88. The Standard & Poor's 500 Index fell 10.14 points, or 0.74 percent, to 1,365.00. The Nasdaq Composite Index fell 10.44 points, or 0.36 percent, to 2,909.77.

European shares ended a volatile session sharply lower as European Central Bank President Mario Draghi disappointed investors who had been expecting some bold actions since his pledge last week to do 'whatever it takes' to defend the euro.

The FTSEurofirst 300 index closed 1.2 percent lower and the MSCI world stock index lost 1.0 percent. Spanish and Italian stocks were hit especially hard, with indexes falling around 5 percent each.

In Asia, Nikkei share average advanced as investors scooped up battered stocks, while hopes for policy action from the European Central Bank offered support.

The Nikkei added 0.1 percent to 8,653.18, after meeting resistance a round 8,687.93, the 50 percent retracement of its rally from June 4 to July 4. The broader Topix was up 0.4 percent at 732.98.