By Chikako Mogi
TOKYO (Reuters) - Risk assets fell broadly on Monday after elections in Greece and France fuelled questions about commitments from struggling euro zone economies to pursue austerity measures, widely seen by markets as crucial to resolving the bloc's debt crisis.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) shed 1.9 percent while Japan's Nikkei stock average (.N225) slid 2.5 percent. (.T)
Stock futures were down 1.1 percent.
Much weaker-than-expected U.S. jobs data on Friday added to concerns as it raised the biggest question mark yet about the prospects of growth in the world's largest economy.
"The election results may topple market perception that Europe was making progress in its debt woes," said Mitsuru Sahara, chief FX manager at Bank of Tokyo Mitsubishi-UFJ in Tokyo.
U.S. crude futures dropped more than $3 a barrel while Brent crude fell more than $2.50 after elections and U.S. jobs data. (O/R)
The Australian dollar fell to a four-month low near $1.0111 against the U.S. dollar on Monday while the euro fell to its lowest since January 25 of $1.2955.
"Austerity will not work to solve Europe's debt crisis. However shifting austerity to higher earners and business will accelerate the debt crisis," said Jeff Sica, president of SICA Wealth Management, which manages over $1 billion in client assets, real estate and private equity holdings.
Socialist Francois Hollande swept to victory in France's presidential election, ousting incumbent Nicolas Sarkozy who had played a key role in structuring bailout schemes for indebted euro zone members and pushed for strict fiscal policies aimed at managing huge debts, in close cooperation with German Chancellor Angela Merkel.
In Greece, election results suggested the two pro-bailout parties would struggle to renew their coalition. It put at risk the policies that have shielded Athens from bankruptcy and a euro exit, threatening the fragile political consensus that has kept Europe's currency bloc intact through more than two years of crisis.
The results raised pressure on Germany to take a more growth-oriented approach to the crisis.
Merkel invited Hollande to visit Berlin as soon he can for a meeting that will set the groundwork for a consensus on growth policies vital to the euro zone's future health.
"The Merkel/Hollande initiative will never materialize due to Hollande and Merkel being polar opposites with no chance to agree on anything," Sica said.
SAFE-HAVEN JGB, YEN
Safe-haven assets such as government debts and the yen rose on Monday.
The dollar stayed below 80 yen and the yield on the benchmark 10-year Japanese government bond slipped 2 basis points to 0.865 percent, its lowest level since October 2010.
Sahara said the euro was expected to stay pressured due to a bearish technical outlook, possibly moving towards the year low near $1.26, while waning optimism about the U.S. economy could further weigh on investors' risk appetite.
"Markets have been rallying so far this year on expectations about the solid U.S. economy, and if such views falter, it could snap uptrends in markets," he said, adding that a series of speeches scheduled this week by Federal Reserve officials may shed light on the Fed's latest view about U.S. growth.
Wall Street posted its biggest weekly fall this year after U.S. jobs data showed 115,000 workers were hired in April, well below forecasts of 170,000.
(Editing by John Mair and Himani Sarkar)
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