HONG KONG (Reuters) - Skyrocketing oil prices at a record $135 a barrel on Thursday re-kindled fears of 1970s-style stagflation, pushing Asian shares down for a third straight day and pinning the dollar near 1-month lows against the euro.

BANGKOK, Thailand -- Asian markets ended mixed Thursday, rebounding from early lows that came after another steep loss on Wall Street and amid persistent worry over the likely impact of a U.S. recession.

LONDON (Reuters) - Gold raced to an historic peak above $1,000 on Friday as the dollar's plunge to record lows on weak data and deepening financial market troubles in the United States boosted bullion's safe-haven appeal.

With lenders cautious, buyers reluctant and the government slow to help, Santa Clara County home sales hit new lows for February, according to DataQuick Information Systems.

More than 2% of all mortgages in the U.S. were in the process at the end of the fourth quarter. Home equity levels decline. Home foreclosures hit new highs and the amount of equity in homes reached new lows as the housing crisis escalated across the country in 2007, new figures showed Thursday.

Worry over the housing-centered credit crunch intensifies after two mortgage investors say they cannot meet margin calls. The S & P 500 falls 29 points to 1,304 -- an 18-month low. Stock prices tumbled Thursday, driving some key indexes below the lows they set in January, amid deepening worries about the effect of debt problems on the economy.

The Federal Reserve spoke loudly this week with a huge interest rate cut – three quarters of a percent – and it may cut more next week. Mortgage rates nationally also fell this week to near four-year lows. And there may be new help in an economic stimulus plan from Washington.

... of finances of many households are partly a byproduct of the subprime mortgage ... Until recently, credit card default rates had been running close to record lows ... highest in regions where troubled mortgages are concentrated, including California ...

Stocks plunged Wednesday as the dollar sank to new lows against other major currencies, in a one-two punch that deepened concerns about the outlook for the U.S. economy.