Most Asian markets fell Monday as investor sentiment continued to be dragged down by concerns over the looming debt crisis in the euro zone.

Japan's Nikkei Stock Average fell 0.15 percent or 13.25 points to 8785.10. Among major losers were NEC Corp (3.15 percent), Chiyoda Corp (3.07) and Sharp Corp (2.12 percent).

South Korea's KOSPI Composite Index slumped 1.67 percent or 30.88 points to 1816.51. Shares of Samsung Electronics Co declined 4.6 percent, and shares of Daiyang Metal Co Ltd dropped 5.34 percent.

The Chinese Shanghai Composite dropped 0.44 percent or 9.88 points to 2251. Hong Kong's Hang Seng marginally rose 0.20 percent or 38.74 points to 19033.87. Major losers were China Coal Energy Co (2.94 percent China Shenhua Energy Ltd (1.34 percent) and Sands China Ltd (1.22 percent).

Meanwhile, India's BSE Sensex rose 0.56 percent or 94.72 points to 17067.23. Major gainers were Suzlon Energy Ltd (4.03 percent), Coal India Ltd (2.09 percent) and Bank of Baroda (1.95 percent).

The rising borrowing cost of Spain is giving worries to the market players as the country's 10-year government bond yields soared to 6.55 percent. The upward pressure on bond yields might reflect uncertainty surrounding the banking bailout offered to Spain. Investors see this as an indication that Spain will require a full blown sovereign bailout to overcome the economic instability.

Concerns about the contagion spreading to Italy, which is faced with mounting debt pressures, also abound. Italy's 10-year government bond yields have risen to 5.8 percent. Investors are of the opinion that bond purchases are nothing more than a temporary solution. There is the worry that Italy will need a more formal bailout to cover its financing needs for a few years.

The formation of a coalition government in Greece, headed by the New Democracy (ND) party, has reduced the chances of an imminent Grexit. But the political situation remains precarious and the government's first major test will be to try and negotiate a better deal on its bailout at the European Union Council Meeting in Brussels June 28 and 29.