Asian stock markets dip; Move to safe havens

Asian stocks have slumped on Monday, extending one of the worst sell-offs in recent years, after Standard and Poor's cut the US's triple-A credit rating.

Japan's main Nikkei 225 index fell 2.4%, while South Korea's Kospi lost 5%, Hong Kong's Hang Seng was down 4%, and Mumbai's Sensex slid 3%.

Investors are worried about the outlook for global growth and debt issues in the US and Europe.

The falls in Asia came despite the European Central Bank's announcement late last night that it would buy eurozone bonds.

Meanwhile, there was a move by investors into safe havens as gold hit record highs in Asian trading, nearing $1,700 an ounce. Treasuries also rallied, with the 10-year yield falling five basis points, despite the US credit rating downgrade.

The dollar reached a low of 74.85 Swiss centimes before trading at 75.41 while oil sank 4% in New York.