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Market Update

Asian Stocks Slump on Euro Debt Woes

Asian markets ended on a gloomy note Monday with several indexes closing at multi-month lows owing to sovereign debt concerns in several European nations. Australia recorded its biggest fall in two and a half months.

At close, Japan's Nikkei, Hong Kong's Hang Seng, India's Sensex and Australia's ASX dropped 1.5% to 2.1%. The Shanghai Composite plummeted 2.9% with weak manufacturing data in the country further adding to woes.

Ratings agency Fitch cut Greece's debt ratings three notches while Standard & Poor's downgraded Italy on Saturday, leading to a fall in the euro and a general risk aversion towards equities and commodities.

The region's perceived save haven, the Japanese yen, rose against most peers.

Stocks on the Move

In Tokyo, Komatsu Ltd, the world's second-largest maker of construction machinery, closed 5.9% lower while Hitachi Construction machinery dropped 6%. Kobe Steel and Kawasaki Heavy Industries finished the day's trade lower by 3.8% and 4.9%, respectively. Troubled power maker Tokyo Electric Power slumped 9%.

Maker of second-hand luxury handbags, Milan Station debuted spectacularly on the Hang Seng, ending up 66% over its offer price, buoyed by confidence over Hong Kong's retail market, but it was not enough to help the struggling index.

Chinese banks were among the biggest losers with China Minsheng Banking Corp and China Everbright Bank ending down 2.6% and 3.2%, respectively. Bank of China closed 1.5% lower.

The weak manufacturing data hammered down auto-makers with SAIC Motor Corp down 3.3% and FAW Car falling 5.8%.

In Tokyo, ANZ Banking Group fell 3.4%, National Australia Bank slid 2.7% and Commonwealth Bank of Australia lost 1.4%. Investment bankers Macquarie Group was down 2%.

In India, state-run Bharat Heavy Engineering--the country's largest power-equipments maker fell 7.6% after it was announced the government would divest 5% stake in it.

IT firm Satyam Computers fell 4.2% after it posted a fourth-quarter loss, missing analyst estimates and after it incurred a one-time loss towards the settlement of a class-action lawsuit in the US.

Wipro also fell 1.4% after tax authorities sent the Bangalore-based IT major a "scrutiny notice" seeking details of services provided to clients for the assessment year 2008-2009.

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