Asian stocks falls down | Europe debt crisis

Asian stocks falls down-Europe debt crisis

On Thursday the Asian shares fell after Italy's record-high cost of borrowing renewed fears over the euro zone debt crisis. Analysts said some actions needed to be taken in Italy in order to calm markets.

Frederic Neumann from HSBC in Hong Kong said, “Europe has moved from a manageable crisis in Greece to a much bigger challenge in Italy and we need radical solutions at this point to backstop the markets."

Hong Kong shares slumped 4.48 per cent by the break on Thursday amid growing concerns over the euro zone’s future after Italy's bond yields soared to levels considered unsustainable. The benchmark Hang Seng Index dived 896.92 points to 19,117.51 on turnover of HK$38.93 billion ($5.01 billion).

Italy's borrowing rates soared above 7.0 per cent on Wednesday, rattling financial markets around the world as the level could make it impossible for Rome to keep servicing its 1.9-trillion euro ($2.6 trillion) debt.

Rome is due to pass key reforms by Sunday in a bid to halt the turmoil, after which Prime Minister Silvio Berlusconi will step down and talks on a new government will start, officials said.

The Hong Kong losses were in line with a regional sell-off, with Tokyo shedding 2.70 per cent in the afternoon, Sydney off 2.77 per cent and Seoul down 3.89 per cent.

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