Asian markets slipped on Thursday and the euro sat around four-month dollar lows as euro zone fears reared again, with Italy’s politicians still unable to form a government weeks after an election.

The dollar also slipped as traders moved into the safety of the yen owing to growing uncertainty over the global outlook.

Tokyo fell 1.09 per cent, Hong Kong was 0.98 per cent lower, Sydney lost 0.33 per cent, Seoul shed 0.13 per cent and Shanghai tumbled 2.01 per cent.