Asian stocks tumble on fresh eurozone fears

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Asian stocks tumble on fresh eurozone fears

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Asian stock markets slumped following global fears that the eurozone debt crisis will spread.

12 July,2011 03:29 pm

Asian stock markets slumped on Tuesday, following 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 Europes debt woes engulfing other states, sent the single currency tumbling.Tokyo fell 1.43 percent, or 143.61 points, to 9,925.92, Sydney was 1.90 percent, or 86.9 points lower at 4,495.4 and Seoul tumbled 2.20 percent, or 2,109.73.Hong Kong shed 2.19 percent in the afternoon and Shanghai slipped 1.48 percent.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 -- Europes third and fourth largest economies respectively.Romes finances have been called into question due to worries that key austerity measures will be approved amid tensions in the cabinet, while some also point out that many cuts will not be introduced soon enough.The fears sent the long-term cost of borrowing for Italy to the highest level since the creation of the eurozone.The problems were described by one European analyst as one of the worst moments of the European monetary crisis.International Monetary Fund managing director Christine Lagarde on Monday called the turmoil that has raised fears of an Italian meltdown essentially market driven.But she added that while Greece has done a lot of work to reduce deficits, more work needs to be done.