HONG KONG, June 19: Asian markets mostly fell on Tuesday as fears about Spain’s surging borrowing costs replaced the previous day’s optimism over Greece’s election, while G20 leaders struggled to soothe dealers’ nerves.
Tokyo tumbled 0.75 per cent, or 65.15 points, to 8,655.87 and Sydney shed 0.33 per cent, or 13.6 points, to 4,123.3 and Shanghai gave up 0.66 per cent, or 15.26 points, to 2,300.80.
Hong Kong closed flat, dipping 11.14 points to 19,416.67, while Seoul was also almost unchanged, edging up just 0.06 points to 1,891.77.
Regional shares staged a strong rally on Monday after news that the two main Greek pro-austerity parties had garnered enough votes to form a government, beating groups who had promised to tear up a bailout deal with global lenders -- a move many feared would lead to Greece leaving the euro.
However, the rally faded in Europe and the United States as traders’ attention moved to deepening troubles in Spain, where the yields on benchmark 10-year bonds rocketed to a euro-era record 7.13 per cent.
Anything over 7.0 per cent is considered unsustainable and is the point above which Ireland, Portugal and Greece were forced into asking for rescue packages.
Madrid's woes come as it struggles to deal with a banking crisis as well as a miserable financial situation with soaring unemployment and a huge fiscal deficit.
Adding to the gloom, a report from Spain's central bank said bad debts in the country hit their highest level for 18 years in April, sparking concerns a 100-billion-euro ($126 billion) bailout for its banks might not be enough.
Eyes are also on Washington, where the Federal Reserve will Wednesday wrap up a two-day policy meeting, with many dealers hoping for some form of fresh stimulus to kickstart the economy, which has been hit by Europe's woes.
In other markets: Singapore climbed 0.64 per cent, or 18.19 points, to 2,842.41.
Olam International gained 4.26 per cent to 1.96 and United Overseas Bank added 1.38 per cent to 18.35.
Taipei closed 0.11 per cent, or 8.37 points, lower at 7,273.13.
Smartphone maker HTC rose 3.9 per cent to Tw$386.0 while Taiwan Semiconductor Manufacturing Company was 0.37 per cent lower at Tw$80.5.
Manila closed 0.62 per cent higher, adding 31.20 points to 5,081.61.
Alliance Global Group rose 0.86 per cent to 11.70 pesos but Calata Corp.
bucked the trend to dive 12.36 per cent to 10.78 pesos.
Wellington added 0.70 per cent, or 24.71 points, to 3,480.38.
Air New Zealand closed up 0.58 per cent at NZ$0.87, Fletcher Building gained 0.16 per cent to NZ$6.31 and Telecom was 1.81 per cent higher at NZ$2.54.
Kuala Lumpur gained 0.77 per cent, or 12.25 points, to 1,594.98.
Plantation giant Sime Darby added 0.41 per cent to 9.85 ringgit, while financial firm CIMB Group Holdings gained 0.53 per cent to 7.55. Fajarbaru Builder Group lost 2.21 per cent to 0.89 ringgit.
Jakarta closed 0.54 per cent, or 20.66 points, higher at 3,880.82.
Coal miner Adaro jumped 4.7 per cent to 1,330 rupiah, gold and nickel miner Antam advanced 3.9 per cent to 1,330 rupiah and Telkom gained 1.3 per cent to 7,600 rupiah.
Bangkok rose 0.83 per cent, or 9.68 points, to 1,173.09.
PTT added 1.21 per cent to 335.00 baht and Banpu gained 0.86 per cent to 468.00 baht.
Mumbai edged up 0.9 per cent or 157.97 points to 16,859.80, regaining some of the losses made a day earlier on a surprise central bank decision to keep interest rates unchanged.—AFP