HONG KONG -- Global stock markets fell today as worries about Greece's debt crisis and India's sudden interest rate hike rattled investors.
Major Asian indexes were down as much as 2 percent and European shares opened lower, adding to declines Western markets suffered on Friday. Oil prices fell toward $80 a barrel, while the dollar was little changed against the euro and the yen.
Uncertainty over Greece's ability to pay its massive debts has weighed on investors in recent months. But with other countries that use the euro currency reluctant to come to Greece's aid so far, a solution has been out of reach. Yesterday, Germany's chancellor squelched talk a bailout might be discussed at this week's European summit.
Further weighing on investors was an unexpected decision by India's central bank to raise interest rates. The Reserve Bank of India hiked key lending rates late Friday by a quarter-percentage point in an attempt to cool high inflation amid a faster-than-expected economic rebound. The move unnerved investors concerned growth and asset prices could sink once governments start winding down their stimulus measures.
As trading started in Europe, Britain's FTSE fell 0.6 percent, Germany's DAX shed 0.4 percent and France's CAC-400 dropped 0.5 percent. Wall Street futures pointed to a weaker open in the U.S. today.
Earlier in Asia, Hong Kong's Hang Seng plummeted 437.57 points, or 2.1 percent, to 20,933.25 and South Korea's main benchmark lost 13.44, or 0.8 percent, to 1,672.67.
Japanese markets were closed for a national holiday.
Elsewhere, Australia's market fell 0.9 percent and India's Sensex dropped 0.7 percent. Shanghai's benchmark added 0.2 percent in back-and-forth trade.
Oil prices were down in Asia, with benchmark crude for April delivery falling 56 cents to $80.12 a barrel.
In currencies, the euro slightly higher at $1.3533 from $1.3525 after diving on Friday. The dollar was mostly flat at 90.54 yen from 90.53 yen.
Greece's fiscal crisis has intensified worries lately about countries that ran up enormous debts before the financial crisis and borrowed even more to finance stimulus packages when the recession hit.
The International Monetary Fund sounded the latest warning Sunday, saying countries must watch surging levels of government debt that could otherwise drag down the growth needed to ensure continued economic recovery.
Friday on Wall Street, The Dow fell 37.19, or 0.3 percent, to 10,741.98.
The Standard & Poor's 500 index fell 5.93, or 0.5 percent, to 1,159.90.
-- The Associated Press
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