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International air lanes had been open in the area, although only above 32,000 ft (9,750 metres). The Malaysia plane was flying 1,000 ft higher, officials said. The area was closed to flights afterwards.
The airline said it was carrying 283 passengers and 15 crew.
The Netherlands declared a day of national mourning for its 154 dead. Twenty eight passengers were Malaysian, 27 Australian, 12 Indonesian, nine British, four German, four Belgian, three Filipino and one Canadian. All 15 crew were Malaysian. Nationalities of the others aboard were unclear.
Canadian on downed jet
The loss of MH17 is the second for Malaysia Airlines this year, following the mysterious disappearance of Flight MH370 in March, which vanished with 239 passengers and crew on board on its way from Kuala Lumpur to Beijing.
Separatists were quoted in Russian media last month saying they had acquired a long range SA 11 anti aircraft system.
HRABOVE, Ukraine World leaders demanded an international investigation into the shooting down of a Malaysian airliner over eastern Ukraine in which all 298 people on board were killed, a tragedy that could further heighten tensions between Russia and the West. official said Washington strongly suspected a surface to air missile that downed the Malaysia Airlines Boeing 777 on a flight from Amsterdam to Kuala Lumpur on Thursday was fired by Ukrainian separatists backed by Moscow.
In Malaysia, there was a sense of disbelief that another airline Adidas Originals Stan Smith Primeknit Black
Russian President Vladimir Putin at loggerheads with the West over his policies toward Ukraine pinned the blame on Kiev for renewing its offensive against rebels two weeks ago after a ceasefire failed to hold. The Kremlin leader called it a "tragedy" but did not say who brought the Boeing 777 down.
"We were supposed to celebrate," Noor said, weeping.
Ukrainian officials accused rebels of using a Soviet era SA 11 missile system acquired from Russia offering evidence that they may have believed they were firing on a Ukrainian military aircraft.
suggested militants thought they had hit a Ukrainian military plane before finding the airliner remains.
The Ukrainian government released recordings it said were of Russian intelligence officers discussing the shooting down of an aircraft by rebels they were supporting. (1320 GMT), they Adidas Neo First Copy
Some international airlines, including Australia's Qantas Airways and Korea's two major carriers, shifted the route taken by flights operating over Ukrainian air space months ago amid increasing tensions between Kiev and pro Moscow rebels. Federal Aviation Administration issued an order prohibiting American aircraft from flying over eastern Ukraine.
"Hell," says one of those being recorded. "It's almost 100 percent certain that it's a civilian plane. Bits were falling in the streets . Bits of seat, bodies."
Reuters journalists saw burning and charred wreckage Adidas Los Angeles Gray
More than 20 Australians were among the many nationalities aboard Flight MH17. The Netherlands was the worst affected, with 154 Dutch citizens on the downed plane.
Akma Mohammad Noor said her sister, Rahimah, was on the flight, coming home for the first time in years to mark the Muslim festival of the end of Ramadan.
At the airport in Kuala Lumpur, relatives of those aboard gathered, hoping for word.
The plane crashed near the village of Hrabove about 40 km (25 miles) from the border with Russia near the regional capital of Donetsk, an area that is a stronghold of rebels who have been fighting Ukrainian government forces for several months.
"I was working in the field on my tractor when I heard the sound of a plane and then a bang," one local man told Reuters at Hrabove, known in Russian as Grabovo. "Then I saw the plane hit the ground and break in two. There was thick black smoke."
There was no evidence Ukrainian government forces fired a missile, said the official, speaking on condition of anonymity. Vice President Joe Biden, speaking in Detroit, said the passenger jet was apparently "blown out of the sky".
Ukraine accused pro Moscow militants, aided by Russian military intelligence officers, of firing a long range, Soviet era SA 11 ground to air missile. Leaders of the rebel Pink Adidas Originals Donetsk People's Republic denied any involvement and said a Ukrainian air force jet had brought down the intercontinental flight.
Pro Russian separatist commander Igor Strelkov leaves after a news conference in the eastern Ukrainian city of Donetsk, July 10, 2014. (REUTERS/Maxim Zmeyev)
disaster could strike so soon.
bearing the red and blue Malaysia Airlines insignia and dozens of bodies in fields near the village of Hrabove.
DISBELIEF IN MALAYSIA
"If it transpires that the plane was indeed shot down, we insist that the perpetrators must swiftly be brought to justice," Malaysian Prime Minister Najib Razak told a pre dawn news conference in Kuala Lumpur.
An emergency worker said at least 100 bodies had been found so far and that debris was spread over 15 km (9 miles).
After the downing of several Ukrainian military aircraft in the area in recent months, including two this week, Kiev had accused Russian forces of playing a direct role.
Australian Prime Minister Tony Abbott appeared to go further than other Western leaders in apportioning blame, demanding on Friday that Moscow answer questions about the "Russian backed rebels" that he said were behind the disaster.
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