The Tokyo bourse shut 20 minutes early as trading volumes exceeded the exchange's system capacity with the heaviest selling yet again in Internet firms as investors continue to bail out following an investigation into Internet portal Livedoor.

Technology stocks were the biggest decliners in early European trading, with French-Italian chip maker STMicroelectronics and German rival Infineon down around 3 percent each after sector leader Intel posted fourth-quarter profit and revenue below expectations.

A drop in IBM's quarterly sales and Yahoo's weaker-than-expected update added to sour sentiment in the sector and raised concerns about the quality of earnings at the start of a new reporting season on both sides of the Atlantic.

U.S. crude prices at $66.56 a barrel boosted energy stocks such as BP but added to worries about squeezed corporate profit margins.

By 0815 GMT, the FTSEurofirst 300 Index of leading European shares was 1.3 percent lower at 1,280.27 points, its lowest intraday level since Jan. 3. In London, the FTSE 100 was 0.95 percent lower at 5,645.1 points.