Asian markets fall on Europe fears

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Asian markets fall on Europe fears

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25 May,2010 01:09 pm

Fears that the European debt crisis could spread and spark another global financial meltdown sent Asian markets tumbling Tuesday after Spain nationalised an ailing savings bank. The euro late last week picked itself up from four-year lows against the dollar but investors again moved to sell off the single currency, looking for less risky investments, dealing a blow to Asian exporters. Tokyo was more than three percent percent lower in afternoon trade while Hong Kong dived 1.94 percent, Sydney shed 2.33 percent and Seoul plummeted 2.65 percent. Shanghai fell 0.82 percent on profit-taking after the key index posted its biggest single-day gain in more than seven months in the previous session. Japanese exporters were particularly weak due to their exposure to European markets. Nikon plunged 5.03 percent and Olympus was down 3.56 percent while Sony fell 3.06 percent. Oil was lower. New York's main contract, light sweet crude for delivery in July, was down 56 cents to 69.65 dollars a barrel, while London's Brent North Sea crude for July shed 72 cents to 70.45 dollars. Gold opened at 1,188.00-1,189.00 US dollars an ounce in Hong Kong, marginally down from Monday's close of 1,189.00-1,190.00 dollars.