Asian markets have dipped for Europe Election

Asian markets have dipped on fears that the eurozone may have to rein in austerity measures that some see as key to solving the region's debt crisis.

It follows the election of Francois Hollande as French president and parliamentary elections in Greece.

Japan's Nikkei 225 index fell 2.5%, South Korea's Kospi shed 1.6% and Hong Kong's Hang Seng dropped 2%.

Mr Hollande has said he wants Europe's economies to focus on growth rather than austerity to reduce debt burdens.

The fear among investors is that the newly elected governments in the two countries may pursue spending increases in a bid to boost growth.

That could see debt levels rise, especially in Greece, once again triggering concerns about whether the region's economies will be able to solve the ongoing debt crisis.

"Investors are concerned on whether the eurozone fiscal compact will survive," Arjuna Mahanedran of HSBC Private Bank told the BBC.

"That is key to solving the region's debt crisis."

The euro also fell to a three-month low against the US dollar in Asian trade.