Asian markets down on eurozone debt pact worries

HONG KONG: Asian markets fell Tuesday, tracking losses on Wall Street as worries rose that a deal by European Union leaders to contain the region's debt crisis would not be enough to solve its fiscal woes.

The concern, which weighed on the euro, was amplified by warnings from credit ratings agencies over the situation, with Moody's Investors Service saying that the debt crunch was in a "critical and volatile stage."

Tokyo was 1.06 percent lower in afternoon trade, Sydney fell 1.30 percent while Hong Kong was off 0.87 percent. Seoul lost 1.43 percent, with Shanghai shares 1.33 percent lower.

On Wall Street, the Dow Jones Industrial Average closed 1.34 percent lower Monday, while the broader S&P 500 lost 1.49 percent and the Nasdaq Composite shed 1.31 percent.

Intel shares sank 4.0 percent after it lowered its fourth-quarter earnings outlook, blaming the months of flooding in Thailand that shut down some of the world's largest plants making computer disk drives.

On currency markets, the euro fetched $1.3178 and 102.70 yen in Tokyo morning trade, compared with $1.3188 and 102.72 yen in New York late Monday. The dollar was flat against the Japanese currency, at 77.90 yen.

New York's main oil contract, light sweet crude for delivery in January, was up 19 cents to $97.96 a barrel.

Brent North Sea crude for January delivery was up 14 cents to $107.40.

Gold was trading at $1,655.20 an ounce at 0410 GMT, against $1,680.94 an ounce late Monday.