HONG KONG, Nov 21 (AFP): Asian markets fell Friday as investors followed a Wall Street tumble on renewed concerns about the global economic recovery while Japan declared it was in a state of deflation.

Tokyo lost 0.54 per cent, Hong Kong 0.83 per cent, Sydney 1.34 per cent and Taipei one per cent.

Wall Street shed 0.90 per cent after eight microchip firms, including Intel and Texas Instruments, were downgraded on fears their inventories were too high.

It was also dragged by an Organisation for Economic Cooperation and Development (OECD) report forecasting a "modest" rebound from the global economic slump.

On Friday Japan held its rates at super-low levels before saying the country "is in a mild deflationary situation", the first such announcement in more than three years.

The Cabinet Office also said a tough employment situation will continue for the time being. Japan's unemployment rate stood at 5.3 per cent in September.

Shanghai was pulled 0.37 per cent lower on liquidity fears after the Shanghai Securities News reported Beijing might raise the minimum reserves lenders must deposit with the central bank.

MUMBAI: Up 1.41 per cent. The 30-share Sensex rose 236.2 points to 17,021.85.

TOKYO: Down 0.54 per cent. The Nikkei-225 lost 51.79 points to 9,497.68.