Asian markets keep falling

Asian markets fell for a third straight session and the euro sat at 11-month lows Thursday on growing doubts over last weeks European debt deal as Germany warned the crisis would last for years.Data in Japan highlighted the impact of the European crisis on the countrys economy as the closely watched Tankan survey showed most manufacturers were pessimistic about the future.Tokyo shed 1.66 percent, or 141.76 points, to close at 8,377.37 and Sydney fell 1.21 percent, or 50.7 points, to 4,139.8 while Seoul shed 2.08 percent, or 38.64 points, to end at 1,819.11.Hong Kong fell 1.78 percent, or 327.59 points, to 18,026.84 and Shanghai lost 2.14 percent, or 47.63 points, to 2,180.90.German Chancellor Angela Merkel added to the already weak sentiment when she told parliament: Getting over the state debt crisis is... a process. This process wont last weeks, it wont last months, it will last years.Although she said the region would overcome its problems, investors remained risk-averse.On Wednesday Romes five year bonds hit a euro-era record and in early trade Thursday the yield on 10-year bonds rose above the seven percent level considered unsustainable for nations to service their debts. The jitters are turning stronger again, said Mirae Asset Securities analyst Lee Jin-Woo in Seoul.Judging from the rising yield for Italys government bonds, the markets havent found confidence even after the European summit, Lee told Dow Jones Newswires.European Union leaders from 26 of the 27 member states agreed at a high-stakes Brussels summit last week to back a Franco-German drive for tighter budget policing in a bid to save the eurozone.After Britain, which does not use the euro, blocked changes to an EU-wide treaty, the other 26 EU states signalled their willingness to join a new fiscal compact imposing tougher budget rules.However, the summits plans for a $200 billion boost to the International Monetary Fund were thrown into doubt when Germany said it would not provide any extra cash if other non-euro member nations, including Britain and the United States, did not contribute.Meanwhile Standard & Poors is expected to decide soon whether or not to downgrade 15 of the 17 eurozone members after putting them on warning last week.And rival agency Moodys has said the crisis talks failed to produce decisive policy measures, saying it would review the credit ratings of all EU states within the next three months.The euro remained under pressure but edged above the $1.30 level, after falling below the threshold in New York overnight. The common currency fetched $1.3006 in early European trade, compared with $1.2981 late Wednesday in New York.The unit is sitting at its lowest levels since January. It bought 101.41 yen from 101.26 yen. The dollar bought 77.98 yen, down from 78.08 yen in New York.In Japan the quarterly Tankan survey of manufacturers showed a majority were downbeat about the outlook due to Europes woes, the stuttering US recovery, Thailands flood crisis and the strong yen.Large manufacturers sentiment in December dropped to a worse-than-expected minus four from Septembers positive two, the Bank of Japans survey showed.The figures represent the percentage of companies saying business conditions are good minus those saying conditions are bad.The latest reading was worse than the median forecast of minus two by economists polled by Dow Jones Newswires, and marked the first drop since June, when the headline reading stood at minus nine.Oil prices bounced back strongly after suffering losses of around five percent overnight due to concerns over demand in Europe and in the wake of oil cartel OPECs decision to maintain its current production levels.New Yorks main contract, light sweet crude for January delivery was 70 cents higher at $95.65 a barrel and Brent North Sea crude for January delivery advanced $1.23 to $106.25.Gold was trading at $1,584.70 an ounce at 0830 GMT, against $1,637.90 an ounce late Wednesday.In other markets:Taipei fell 2.28 percent, or 157.98 points, to 6,764.59. Hon Hai shed 3.79 percent to Tw$78.8 while TSMC fell 2.68 percent to Tw$72.5. Manila closed flat, edging down 3.26 points to 4,282.67.Lepanto Mining tumbled 5.3 percent to 1.61 pesos and Philippine Racing Club shed 3.2 percent to 6.97 pesos but Philippine Long Distance Telephone added 1.1 percent to 2,480 pesos. Wellington fell 0.64 percent, or 20.95 points, to 3,263.19.Fletcher Building fell 1.0 percent to NZ$6.10, Telecom shed 0.7 percent to NZ$2.07 and Sky City lost 0.3 percent to NZ$3.46. But exporter Fisher & Paykel Healthcare gained 2.1 percent to NZ$2.45.