Asian markets fell Monday following the revival of the investor concerns about the deepening debt burden faced by the euro zone and worsening global economic growth.

The Chinese Shanghai Composite fell 1.21 percent or 26.17 points to 2142.47. Hong Kong's Hang Seng declined 2.57 percent or 505.02 points to 19135.78. Major losers were HSBC Holdings PLC (4.48 percent) and CNOOC Ltd (3.64 percent).

Japan's Nikkei Stock Average dropped 1.47 percent or 127.22 points to 8542.65. Among major losers were Sumco Corp (6.09 percent), Toyota Motor Corp (0.74 percent) and Sony Corp (3.13 percent).

South Korea's KOSPI Composite Index declined 2.22 percent or 40.56 points to 1782.37. Shares of Samsung Electronics Co Ltd dropped 2.60 percent and those of Hyundai Motor Co fell 2.69 percent.

India's BSE Sensex dropped 0.80 percent or 137.07 points to 17027.37. Major losers were car maker Maruti Suzuki (5 percent), Lanco Infratech Ltd. (2.24 percent), Central Bank (1.84 percent) and Bank of India (1.49 percent).

Investors continue to worry about the uncertainties in the euro zone economy. The inability to seal the deal on the main elements of the recent EU summit has become a major worrying aspect for market players.

According to a report by Bloomberg Sunday, the International Monetary Fund could cut off any more rescue aid to Greece. Meanwhile, the troika consisting of the European Commission, the European Central Bank and the IMF will meet in Athens Monday to discuss further on the bailout plan for Greece.

Market sentiment was dragged down as the debt pressure on Spain increased. The 10-year government bond yields in Spain soared by around 25 basis points Friday to record highs of about 7.2 percent. The gross domestic product projection by the Spanish government last week showed that Spain's economy would not register growth before 2014, adding to concerns about the amount of sovereign funding needed.

Investors appear to have been unsettled by reports that highly indebted Spanish regions such as Valencia will be seeking a rescue package from the Central Government. Market players sense that by approving 100 billion euros ($ 122 billion) of EU banking aid for Spain only on the condition that the Spanish government accepts full liability for the loans, Germany's lower house of parliament has effectively extinguished hopes of a direct recapitalization of its banking sector.