Asian markets retreat as euphoria over Spanish bank bailout fades

After settling with notable gains in last session, stock markets in the Asian region lost most part of the ground on Tuesday, as majority of equity indices traded with over a percent cuts. The euphoria over EU’s Spanish bank bailout evaporated completely while investors questioned the aid package and focused on other troubled euro zone nations, like Greece where election are due later this week. Investors were also nervous over lack of details of the agreement of Spain aid and the growing realization that Italy may be the next in line to seek even larger bailout. Surge in Spanish bond yields too have stoked concern that a bailout for the nation's banks won't be able to contain European debt crisis. Moreover, cues from overnight US markets too remained discouraging as major indices there suffered brutal sell-off.

The benchmark in Japan got lacerated by over one and a quarter percent on Tuesday and remained the top laggard in Asian space as investors resorted to largely across the board profit booking after yesterday’s around two percent rally. The equity indices in China, South Korea and Taiwan too plunged over a percent as they shunned most of their previous session’s gains.

Shanghai Composite plunged by 23.35 points or 1.01% to 2,282.51, Hang Seng Index declined by 163.02 points or 0.86% to 18,790.61, Jakarta Composite slipped 34.53 points or 0.89% to 3,831.68, KLSE Composite shed 5.26 points or 0.33% to 1,573.15, Nikkei 225 plummeted 110.14 points or 1.28% to 8,514.76, Straits Times Index dropped 20.66 points or 0.74% to 2,767.15, KOSPI Composite Index sank 18.68 points or 1.00% to 1,848.36 and Taiwan Weighted slumped 73.98 points or 1.04% to 7,046.25.