Asian stocks fall on European developments

Asian stocks fell today after budget talks in the Netherlands collapsed over the weekend and a Socialist who wants to put France’s austerity plans in reverse won the first round of the country’s presidential election.

Japan’s Nikkei 225 index fell 0.3% to 9,533.48, as a strengthening yen hurt high-tech exporters.

Hong Kong’s Hang Seng lost 0.7% to 20,871.23 and South Korea’s Kospi fell 0.3% to 1,969.69. Australia’s S&P/ASX 200 dropped 0.2% to 4,357.70.

Over the weekend, Dutch politicians failed to resolve differences over budget cuts needed to bring the Dutch deficit back within the European Union limit of 3% of gross domestic product.

The government is expected to resign within the coming days and call elections later this year, making it the latest European government forced out of office by the continent’s financial crisis.

Markets were also rattled by first-round results in France’s presidential election.

Socialist candidate Francois Hollande garnered more votes than incumbent conservative President Nicolas Sarkozy.

Mr Hollande wants to renegotiate a European treaty intended to limit excessive government spending in order to emphasise growth over austerity.

If Mr Hollande wins a second-round election on May 6, economists fear those steps would upset France’s delicate cooperation with Germany that has been key to Europe’s efforts to resolve its financial crisis.