HONG KONG (AFP) - Deepening fears that a sovereign debt crisis may engulf the eurozone rattled Asian markets Thursday, with shares mixed across the region following a weak lead from Wall Street. Concerns that the Greek financial crisis could be spreading were heightened after Portugal was hit by a credit downgrade and Spain faced mounting criticism of its budget plans Wednesday. EU leaders meanwhile struggled to agree on what to do about Athens woes ahead of a critical summit starting Thursday, with officials foreseeing an unprecedented intervention by the IMF. The downgrade of Portugal highlights the fact that European sovereign debt problems havent been resolved and could possibly be systemic, Macquarie Private Wealth associate director Marcus Droga told Dow Jones Newswires. The deputy governor of the Peoples Bank of China also raised concerns by referring to Greeces debt crisis as a tip of the iceberg, aggravating markets enough to send the euro to a 10-month low against the dollar. The main concern today obviously is Spain and Italy, said Zhu Min in a speech in Hong Kong. The single currency dropped below 1.33 dollars for the first time since May 7 last year, falling to an intraday $1.3283. Sentiment in Asia was mixed with some markets showing more seasonal resilience than others nearing the end of the quarter. Hong Kong closed down 1.10pc or 230.07 points to 20,778.55 while Sydney shed 0.12pc or 6.1 points to end at 4,885.4. Once again, these sovereign debt concerns have reared their ugly head, said IG Markets analyst Ben Potter. Shanghai dropped 1.23 percent, or 37.63 points to 3,019.18 weighed by profit-taking in banks on fears that many could be saddled with bad loans, dealers said. Bank of China fell 1.4pc while ICBC edged down 0.2pc. However, Tokyo edged 0.13 percent higher, gaining 13.82 points to 10,828.85 with exporters boosted by a weaker yen, raising expectations for repatriated earnings. Honda rose 1.2 percent and machinery maker Fanuc added 4.0pc. The greenback had risen to as high as 92.24 yen in New York Wednesday afternoon but stood at 91.80 yen in Tokyo due to profit-taking. On Wednesday, Fitch Ratings downgraded Portugals credit rating by one notch and issued a negative outlook for it, further denting investors appetite for risk as Greeces debt woes continued to roil markets. European officials have repeatedly assured in recent weeks that there is no risk of contagion from the Greek crisis, but financial markets appeared to draw their own conclusions from Fitchs Portugal. Markets will continue to take their cues from the Greek debt crisis. Downward pressure on the euro is likely to remain while wrangling amongst European leaders continues, said Mike Jones, currency strategist at the Bank of New Zealand. Traders also mulled news that the Dubai government has committed 9.5b in aid to its troubled Dubai World conglomerate, which has been negotiating the restructuring of $22b of debt. On Wall Street the Dow Jones Industrial Average shed 0.48 percent as disappointing home sales data added to the gloom. The Commerce Dept said sales of single-family homes dropped 2.2pc month on month in February, a record low for the second consecutive month. With the safe-haven dollar stronger, commodity prices fell. New Yorks main contract, light sweet crude for May delivery, dropped 20 cents to 80.41 dollars a barrel and Brent North Sea crude for May was down 24 cents to 79.38 dollars. HK gold closed lower at 1,090.00-1,091.00 US dollars an ounce, down from Wednesdays close of $1,099.00-1,100.00.