LONDON (AP) - The euro slid to a new two-month low against the dollar and stocks tumbled yesterday, as investors continued to worry that Europe’s debt crisis was spreading despite the €67.5 billion ($88.4 billion) bailout of Ireland.

The euro was down 1.4 percent at $1.31 after earlier hitting $1.3065, its lowest level since September 20. Investors concluded that Sunday’s bailout of Ireland by the European Union (EU) and the International Monetary Fund has done little to stop Europe’s debt crisis from moving swiftly onto another country.

Although Portugal is widely considered to be the most at risk for outside help given the size of its debts relative to its economy, the big worry in the market is a possible bailout for Spain.

Most analysts think European authorities can handle bailing out the relative minnows of Greece, Ireland and Portugal but that Spain - at around 10 percent of the eurozone economy - would be another matter altogether.

The yield on Spanish 10-year bonds shot up 0.24 percentage point at 5.42 percent yesterday and Portugal’s rose 0.05 higher at 7.04 percent. The increases are a measure of investors’ waning desire to purchase Spanish and Portuguese bonds, meaning those countries will pay more to borrow in the money markets.

“Investors cannot yet see the end game to these debt stresses, as they move in herds from one country to another,” said Jan Randolph, head of sovereign risk at IHS Global Insight.

Earlier yesterday in Asia, Japan’s Nikkei 225 stock average added 0.9 percent to close at 10,125.99, buoyed by a stronger dollar, as the yen retained a fairly soft tone against the dollar to the relief of the country’s major exporters.

By late-afternoon London time, the dollar was up another 0.4 percent at 84.35 yen.

South Korea’s Kospi fell 0.3 percent to 1,895.54 amid ongoing tensions between the country and North Korea following last week’s exchange of artillery.

Australia’s S&P/ASX200 index rose 0.4 percent, to 4,618.5, and Hong Kong’s Hang Seng index climbed 1.3 percent to 23,166.22.

Chinese shares were mixed as cautious investors watched for fresh moves to tighten monetary policy and counter inflation. The benchmark Shanghai Composite Index gave up 0.2 percent to 2,866.36. The Shenzhen Composite Index of China’s smaller, second exchange gained 0.5 percent to 1,339.31.

Benchmark oil for January delivery was up 87 cents to $84.63 a barrel in electronic trading on the New York Mercantile Exchange.