Asian shares fall after European sell-off

HONG KONG: Asian shares tumbled on Tuesday, with Tokyo hitting a two-year low, following a huge sell-off in Europe as renewed eurozone debt woes added to already weak confidence in the global economy.

Equities lost out and the euro slumped as traders sought out safe haven assets to take shelter from the gloom, with gold hitting another record high.

Tokyo fell 2.21 percent, or 193.89 points, to 8,950.57, its lowest level since April 2009, while Seoul ended 1.07 percent, or 19.12 points, lower at 1,766.71 and Sydney shed 1.60 percent, or 66.4 points, to 4,075.5.

In the afternoon Hong Kong gave up 1.47 percent and Shanghai was 0.52 percent off.

London's FTSE 100 dropped 3.58 percent, in Paris, the CAC 40 fell 4.73 percent and Frankfurt's DAX plunged 5.28 percent to a two-year low.

US markets were closed on Monday for the Labor Day bank holiday.

The price of gold hit a record high 1,920.90 an ounce at 0600 GMT.