Asian stocks sink on Europe debt concerns

Asian stocks slid Wednesday, following a plunge in U.S. equities as concerns spread that the bailout for debt-laden Greece won't stop the crisis spreading to other European countries.

Some Asian markets pared their losses in afternoon trade while the euro, battered in recent weeks, gained against the dollar. Oil prices extended losses below $83 a barrel.

Stock markets in the U.S. and Europe fell Tuesday as labor unions protested on the streets of Athens, rejecting spending cuts and higher taxes that would come with a $144 billion bailout package for Greece from the European Union and International Monetary Fund. Investors are also worried Spain and Portugal may need even larger debt bailouts.

Hong Kong's Hang Seng dropped 327.89 points, or 1.6 percent, to 20,435.16 but was off its morning lows. Australia's index skidded 1.3 percent, Indonesia slid 2.3 percent and Taiwan sank 3 percent. China's benchmark Shanghai index, meanwhile, recovered early losses to rise 0.5 percent.

Markets in Japan, South Korea and Thailand were closed for holidays.

Asian countries, which have pared debt since the region's economic crisis of 1997 and 1998, will likely fare better than elsewhere if Europe's debt crisis worsens, Singapore's DBS bank said in a report.

"Volatility and some degree of contagion still looks likely until the situation in Europe is clarified," DBS said. "Thank goodness Asia has spent the last ten years paying down its foreign and public debt."

"Asia's fundamentals on public and foreign debt should help it weather the storm with relative ease."

The Dow on Tuesday fell 225.06, or 2 percent, to 10,926.77, its lowest close since April 7. The S&P 500 index fell 28.66, or 2.4 percent, to 1,173.60 while the Nasdaq composite index fell 74.49, or 3 percent, to 2,424.25.

In currencies, the dollar rose to 94.93 yen from 94.70 while the euro gained to $1.2984 from $1.2967.

Benchmark crude for June delivery was down 20 cents to $82.54 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $3.45, or 4 percent, to settle at $82.74 on Tuesday.