Asian stock markets hit by Euro crisis

Asian stock markets are sharply lower in early trading amid intensifying worries about Europe’s debt problems. Sentiment also soured after Wall Street sustained heavy losses before the weekend.

Japanese markets have already taken a hit, with stock indexes down, and Japan‘s consumer price index rising over the weekend.

Adding to this, investors were rattled by the surprise resignation of Juergen Stark, a key official at the European Central Bank. His decision revealed deepening divisions over how to solve Europe’s economic problems and exacerbated concerns that the continent‘s heavily indebted economies could collapse.

The resignation of Japan’s new trade minister, after just eight days in office also unnerved the Tokyo market.

The exceptionally brief tenure of Yoshio Hachiro undermined confidence in Prime Minister Yoshiko Noda, who is tasked with reviving the economy and speeding up Japan‘s recovery from the March 11 earthquake, tsunami and nuclear crisis.

Economist also worry that if Japan continues its trend of inflation and falling stock prices, Japanese producers may not be able to hit US markets as broadly in this upcoming Christmas holiday rush.

(아주경제 앤드류 이 기자)

Park Sae-jin swatchsjp@ajunews.com