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| Asian stocks open sharply lower on new eurozone fears | Asian stocks open sharply lower on new eurozone fears |
| (40 minutes later) | |
| Asian stock markets opened sharply lower on Thursday after Italy's record-high cost of borrowing renewed fears over the eurozone crisis. | Asian stock markets opened sharply lower on Thursday after Italy's record-high cost of borrowing renewed fears over the eurozone crisis. |
| Japan's Nikkei index fell 2.3%, Australia's ASX was down 2.8% while South Korea's Kospi opened 2.6% lower. | |
| The falls in Asian markets follow losses in US markets. | |
| The cost of borrowing on Italian government bonds jumped to 7% on Wednesday, a level considered unsustainable by economists. | The cost of borrowing on Italian government bonds jumped to 7% on Wednesday, a level considered unsustainable by economists. |
| The high interest rate means that if Italy were to borrow money today, with the aim of paying it back in 10 years, it would have to pay an interest of 7%. | |
| Italy has a low growth rate, which means it would struggle to repay its debt at these rates. | |
| Analysts say some actions need to be taken in Italy in order to calm markets. | Analysts say some actions need to be taken in Italy in order to calm markets. |
| "Europe has moved from a manageable crisis in Greece to a much bigger challenge in Italy," said Frederic Neumann from HSBC in Hong Kong. | |
| "We need radical solutions at this point to backstop the markets." | "We need radical solutions at this point to backstop the markets." |