Asian markets slip on EU summit concerns

HONG KONG: Asian markets fell Monday on pessimism over the likelihood that a European summit this week will come up with a plan to address the region's crippling debt crisis.

Last week's announcement by the eurozone's four biggest hitters to set aside more than $160 billion to boost growth had little impact on sentiment, with most of the cash coming from existing projects.

Tokyo fell 0.15 percent by the break, Hong Kong slipped 0.10 percent, Sydney shed 1.08 percent, Seoul dived 1.62 percent and Shanghai lost 0.62 percent.

Attention has turned to the meeting in Brussels on Thursday and Friday, where leaders will try to come up with a plan to support weaker economies and avoid a potentially catastrophic economic collapse.

The talks come as debt woes have spread from Greece to Spain, which is enveloped by a banking and economic crisis, while Italy is also in danger of succumbing.

However, despite so much at stake there are concerns that the differences between leaders on the best way forward -- with powerhouse Germany almost alone in striving for austerity -- will mean no concrete or effective plan is agreed.

"We suspect investors will walk away disappointed once again," said Standard Chartered in a note.

"We expect the pressure on both Europe and its financial system to resume, encouraging further depreciation of the euro," it said, according to Dow Jones Newswires.

On Friday Germany, France, Italy and Spain -- the four biggest economies in the eurozone -- agreed measures worth up to 130 billion euros ($163 billion) to tackle the debt crisis.