U.S. stocks plunged on Wednesday, confirming a correction for the Nasdaq and erasing the Dow and the S&P 500's gains for the year. The losses sparked safe-haven demand for sovereign bonds, the dollar and the yen, while pulling down MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> on Thursday. [MKTS/GLOB] [.N]

Philippine stocks <.PSI> dropped 2.3 percent, widening the year's losses to more than 18 percent - the worst percentage drop in the region. The index has lost 3.7 percent over the last three sessions.

Lender BDO Unibank Inc fell 3.6 percent in the session while Security Bank Corp lost 5.2 percent.

Singapore shares <.STI> fell 0.6 percent, recouping some the session's earlier losses, with shipbuilder Yangzijiang Shipbuilding (Holdings) Ltd down 3.3 percent and casino and gaming operator Genting Singapore Ltd dropping 3.3 percent.

Malaysian stocks <.KLSE> closed lower, with oil and gas services provider Dialog Group Berhad retreating 5.3 percent and telecom operator Telekom Malaysia Berhad losing 2.3 percent.

Vietnamese shares <.VNI> finished 1.3 percent lower, as its real-estate sector suffered heavy losses. The index posted its sixth straight session of losses and has lost 6.2 percent this year.

Vinhomes Joint Stock Company lost 5.5 percent and Vingroup Joint Stock Company fell 2 percent in the session.

Indonesian shares <.JKSE> closed 0.8 percent firmer, boosted by consumer and financial sectors.

"It's a technical rebound because valuations show it's time to buy as they have reached bottom. Also Q3 company earnings that are coming out are relatively in line, or not so bad too," said Satria Sambijantoro, economist with Bahana Sekuritas in Jakarta.

"Stocks are trading 12-13 times P/E ratio, so it's a good time to buy. Also there is optimism from the recent stability of the rupiah," added Fakhrul Fulvian, an economist with Trimegah Securities Indonesia in Jakarta.

The Indonesian central bank recently held its key interest rates steady, taking advantage of relatively calm markets and as the rupiah holds stable near a 20-year low.

Thai shares <.SETI> climbed 1.4 percent as Thai energy stocks gained after PTT Exploration and Production PCL swung to a quarterly profit, boosting the sector.

(Reporting by Rashmi Ashok in Bengaluru; additional reporting by Gayatri Suroyo; Editing by Amrutha Gayathri)

By Rashmi Ashok