Asia Roundup: Sell-off on eurozone debt fears

by **hlk** Wed 13 Jul 2011, 07:38

HONG KONG: Asian stock markets slumped yesterday, extending a global sell-off as fears grew that the eurozone debt crisis will spread, raising the prospect of a devastating default.

The crisis, which came despite eurozone members agreeing to strengthen a multi-billion-dollar fund to prevent Europe's debt woes engulfing other states, sent the single currency tumbling.

Tokyo fell 1.43 per cent, or 143.61 points, to 9,925.92, Sydney was 1.90 per cent, or 86.9 points lower at 4,495.4 and Seoul tumbled 2.20 per cent, or 2,109.73.

Shanghai fell 1.72 per cent, or 48.11 points, to 2,754.58.

Investors have become increasingly concerned that political leaders and bankers holding Greek debt talks in Brussels remain unable to agree on how to avert an outright default by Athens, sending down European and US shares.

Analysts fear that the Greek crisis might spread to larger economies, such as heavily indebted Italy and Spain - Europe's third- and fourth-largest economies respectively.

Global markets tumbled on Monday. In New York, the Dow Jones Industrial Average closed down 151.44 points (1.20 per cent) to 12,505.76. The broader S&P 500 shed 24.31 points (1.81 per cent) to stand at 1,319.49.

"It will take one or two years for the sovereign debt issues in Europe to be resolved," said Masayoshi Yano, a senior market analyst at Meiwa Securities in Tokyo.

"Market sentiment is fickle, switching back and forth between optimism and pessimism," he told Dow Jones Newswires.

Despite the region-wide sell-off, Australia's Macarthur Coal ended up 36.6 percent after Peabody of the United States and European giant ArcelorMittal launched a takeover bid f

In other markets:

* Mumbai lost 0.72 per cent with the Sensex index ending down 136.55 points to 18,721.39.

* Taipei tumbled 2.02 per cent, or 174.84 points, to 8,491.01.

* Manila fell 0.59 per cent, or 2.77 points, to 4,350.09.

* Jakarta fell 1.44 per cent, or 57.57 points to 3,938.02.

* Bangkok fell 1.38 per cent, or 14.85 points, to close at 1,062.39. - AFP