Asian stocks tumble on fresh eurozone fears

HONG KONG: 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.

Tokyo fell 1.54 percent by the break, Hong Kong slumped 2.08 percent and Sydney shed 1.50 percent while Seoul dived 1.90 percent and Shanghai dropped 1.03 percent.

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

Analysts also fear that the Greek problem might spread to larger economies, such as heavily indebted Italy and Spain.

The heavy losses in Asia followed similar selloffs Monday in the US and Europe. On Wall Street the Dow closed down 1.20 percent, the S&P 500 shed 1.81 percent and the Nasdaq fell two percent.

And in Europe Milan' FTSE Mib index plummeted 3.96 percent, the Frankfurt DAX 30 index shed 2.33 percent and the Paris CAC 40 index lost 2.84 percent.

Madrid's Ibex 35 slid 2.69 percent and Lisbon's PSI-20 fell 4.28 percent.

London's FTSE-100 slipped 1.03 percent.

The euro was hurt by the troubles. The single unit stood at $1.4035 in early Tokyo trade, from $1.4029 late Monday in New York and well down from the $1.4188 in Asia on Monday.

It was also at 112.45 yen from 112.51 yen. It fetched 114.59 yen in Asia the previous day.

The dollar traded at 80.28 yen, compared with 80.24 in New York.

On oil markets New York's main contract, light sweet crude for delivery in August, fell 49 cents to $94.66 a barrel.

Brent North Sea crude for August delivery shed 45 cents to $116.79.

Gold, a safe haven in times of economic uncertainty, opened at $1,552.40-$1,553.40 an ounce in Hong Kong, up from $1,546.00-$1,547.00 at the close on Monday. (AFP)