Sentiments in Asian region turn bearish on Spanish debt concerns

Sentiment in the Asian region turned bearish and all the Asian markets barring Straits Times ended the day’s trade in the red on Tuesday as investors booked their profit amid fears over Europe’s debt crisis resurfaced after the yield on Spain’s 10-year bond rose to 6.48 percent on Monday, higher than Friday’s close, after Fitch downgraded Spain’s two largest banks. Moreover, investors remained unconvinced that the bailout for debt-stricken Spanish banks will halt Europe’s spreading debt crisis. In addition, attention is turning to problems in Italy and worries grew over this weekend’s elections in Greece.

Hong Kong shares fell 0.43 percent while, Japan's Nikkei share average declined over a percent, as a promised bailout for Spanish banks left investors unconvinced that financial contagion would be contained, and doubts about the euro-zone’s future crept back. Moreover, KOSPI Composite dipped over half a percent over creeping doubts about the effectiveness of Spain’s bank bailout; although the index cut back some of its earlier losses on institutional buying.