(Reuters) - Asian stocks fell and the euro remained under pressure on Monday after the resignation of a top German European Central Bank board member cast further doubt on Europe's ability to tackle its worsening sovereign debt crisis.
Oil prices slipped and the dollar gained broadly as the worries about euro zone's woes combined with fears about flagging world growth to ensure no let up in the gloom that has gripped global markets for much of the past six weeks.
"People are quite nervous about Greece and other countries in the European area, so that is why investors are escaping to the dollar," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. "It's risk aversion."
Juergen Stark's plan to resign from the ECB's board underscored the internal divisions over its bond-buying program -- one of the central bank's main weapons in fighting the debt crisis by forcing down yields of country's under pressure from the bond markets.
Japan's Nikkei .N225 fell 2.2 percent, while the MSCI's broadest index of Asia Pacific shares outside Japan fell around 1 percent.
Data from Lipper showed a brief flirtation with stocks at the end of August has waned, with less than a net $600 million flowing into U.S. equity funds in the ended September 7, compared with a net inflow of $6.3 billion in the previous week.
MSCI's All-Country World index is now 19 percent below its 2011 high set in May, not far from the 20 percent decline that is the rule-of-thumb definition of a bear market.
The euro was struggling at around $1.36, after a sharp slide at the end of last week, while the dollar index .DXY, which tracks the greenback against a basket of major currencies, firmed around 0.3 percent.
U.S. crude slid by 87 cents on Monday to $86.37 a barrel and Brent crude eased as much as 97 cents to $111.80.
Gold, a traditional safe haven at times of market volatility, was steady around $1,856 an ounce.