Asia Roundup: EU debt fears sour mood

HONG KONG: Asian markets fell yesterday on fears Europe's leaders will not agree a deal to tackle their debt crisis as the first day of a crucial summit broke up with plans for a full treaty change in tatters.

With the mood already soured by the European Central Bank saying it would not indefinitely buy the bonds of debt-wracked countries, news of the split within the 27-nation bloc left investors' nerves on edge.

The downbeat outlook for the eurozone also outweighed positive news from China, which said that inflation was at its lowest level for more than a year, raising the prospect of fresh monetary easing.

Tokyo fell 1.48 per cent, or 128.12 points, to 8,536.46, Sydney lost 1.82 per cent, or 77.7 points, to end at 4,203 and Seoul shed 1.97 per cent, or 37.64 points, to 1,874.75.

Shanghai fell 0.62 per cent, or 14.55 points, to 2,325.27.

Tensions were running high at the two-day summit in Brussels as leaders struggled to find a deal to tackle the debt crisis, which has sent global markets spinning in recent months.


"We will have a euro currency within a stable union," German Chancellor Angela Merkel said.