Political tremors in Italy rattle markets

EUROZONE worries are resurfacing as Italy shifts into yet another bout of political turmoil. Italian shares led the tumble in Europe, pulling down the continent's stocks which were already sharply lower ahead of a probable US government shutdown and arguments over America's debt ceiling.

They piled on more losses after Dow Jones Industrials opened down one per cent, with most bourses lower by more than one per cent.

Most Asian stocks were also not spared the red ink, with heavy losses across the region yesterday. Japan's Nikkei 225 stock average, the region's heavyweight, led the way down, closing 2.1 lower at 14,455.80. Hong Kong's Hang Seng index was down 1.5 per cent to 22,859.86 while South Korea's Kospi was 0.7 per cent lower at 1,074. Singapore's Straits Times Index saw its losses quicken in the last half hour of trading and closed down 1.3 per cent.