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| Version 0 | Version 1 |
|---|---|
| Asia markets fall on euro fears as borrowing costs rise | Asia markets fall on euro fears as borrowing costs rise |
| (40 minutes later) | |
| Asian markets have fallen on fears about the eurozone debt crisis after the cost of borrowing for Spain and Italy rose. | Asian markets have fallen on fears about the eurozone debt crisis after the cost of borrowing for Spain and Italy rose. |
| On Monday, Spanish bond yields rose to almost 6.5%, while ten-year Italian bond yields rose to 6.032%. | On Monday, Spanish bond yields rose to almost 6.5%, while ten-year Italian bond yields rose to 6.032%. |
| Japan's Nikkei 225 index fell 1.8% and South Korea's Kospi dropped 1.3%. | Japan's Nikkei 225 index fell 1.8% and South Korea's Kospi dropped 1.3%. |
| Analysts said higher borrowing costs were an indication that investors were worried about the countries' finances despite the bailout of Spanish banks. | Analysts said higher borrowing costs were an indication that investors were worried about the countries' finances despite the bailout of Spanish banks. |
| "This is a realization that Spain, while providing money for its banks, is going to add to its debt-to-GDP ratio," said Paul Zemsky, head of asset allocation at ING Investment Management. | "This is a realization that Spain, while providing money for its banks, is going to add to its debt-to-GDP ratio," said Paul Zemsky, head of asset allocation at ING Investment Management. |
| "They're borrowing more money, not doing anything about growth," he added. | "They're borrowing more money, not doing anything about growth," he added. |
| "Today we're not worried about Spain's banking system falling off a cliff, but other than that, nothing's changed." | "Today we're not worried about Spain's banking system falling off a cliff, but other than that, nothing's changed." |
| 'Too little too late' | |
| While the eurozone debt crisis has been a cause of concerns for sometime, it has so far affected relatively smaller economies such as Greece and Portugal. | |
| However, as the crisis spreads to bigger nations such as Spain and Italy, there are fears that growth in the region may slow even further. | |
| Analysts said that this one one key reason that stock markets in the US and Europe fell on Monday after the initial euphoria over the 100bn-euro ($125bn; £80bn) bailout of Spain's banks announced over the weekend. | |
| In the US, New York's Dow Jones fell 1.1% while in Europe London's FTSE 100 closed down 2.7 points. The French and German indexes were little changed. | |
| "The eurozone crisis needs much more than short-term measures - but all the investors are seeing is political infighting rather than a collective long-term plan," Justin Harper of IG Markets told the BBC. | |
| "The European policy makers are slow to react to the issues. They are doing too little, too late." |