Asian markets slip amid new Europe fears

HONG KONG: Renewed fears over Europe's sovereign debt crisis continued to dampen sentiment in Asia Tuesday as investors were given an anaemic lead from Wall Street after a mixed bag of US data.

Tokyo was flat, edging down 5.93 points to 9,464.71, Seoul was 0.37 percent lower, slipping 7.33 points to 1,985.30 and Sydney gave up 0.32 percent, or 13.7 points, to close at 4,288.6.

In the afternoon Hong Kong shed 0.72 percent and Shanghai lost 0.33 percent.

Fears that Spain could follow Greece, Ireland and Portugal in needing a bailout sent the cost of the country's debt above six percent for the first time since late last year.

Investors fear that Madrid could slip into a spiral of recession owing to the swingeing cuts it has made to reduce its public deficit.

AFP