The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research

Asian stocks plummet on Cyprus deposit levy

The euro fell to its lowest level this year against the dollar, while Japanese and U.S. bonds rallied on safe haven buying, after euro-zone finance ministers reached an agreement over the weekend that forces depositors in Cypriot banks to share in the cost of the latest euro-zone bailout.

Moody's Investors Service, a ratings agency, said today the proposed 6.75% to 9.9% deposit levy is a negative move for bank depositors across Europe. Many cash machines in Cyprus ran out of money and a bank holiday that started Monday morning has been extended.

Needless to say, Asian shares opened substantially lower this morning on news of the levy, which has likely shaken depositors' confidence across Europe. Regional markets extended losses, amid fears the Chinese government will step up property market curbs, after a report showed China's new home prices posted the broadest advance since December 2011, rising in 62 of the 70 cities the government tracks in February. Tomorrow, in a test of market confidence, both Greece and Spain plan to auction bonds.

Australian shares lost more than 2% today. Download the PDF report attached to find out strongest risers and biggest losers in Australia today.

To read today's report in PDF in full, see link at the top of this story.

(For a more comprehensive summary of last night's market action see FNArena's Overnight Report.)

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