Asia stocks fall as S&P warns euro nations on debt

BANGKOK (AP) — Asian stocks sank Tuesday after Standard and Poor's warned 15 countries using the euro that it could downgrade their credit ratings. Skepticism over a new plan to prevent a breakup of the common currency also dragged markets lower.

Trader Edward Curran, right, works on the floor of the New York Stock Exchange Monday, Dec. 5, 2011. Stocks rose broadly in early trading Monday on hopes for a plan to restore long-term confidence in the euro

Benchmark oil fell to near $100 per barrel while the dollar rose against the euro and was steady against the yen.

Japan's Nikkei 225 dropped 1.3 percent to 8,583.46. South Korea's Kospi fell 1.5 percent to 1,893.33 and Hong Kong's Hang Seng lost 1.5 percent to 18,889.76. Australia's S&P/ASX 200 shed 1.4 percent to 4,263.10. Benchmarks in Singapore, Taiwan and mainland China also gave up ground. Malaysia and Thailand rose.

The S&P announcement came only hours after French President Nicolas Sarkozy and German Chancellor Angela Merkel on Monday unveiled sweeping plans to change the European Union treaty in an effort to keep tighter checks on overspending nations. Read More...

Posted in: Asia News,Asian Stocks,Business News