Stock markets in China and Hong Kong declined Tuesday as renewed concerns over Spain's financial woes offset optimism over the Greek election results.

Hong Kong's Hang Seng declined 0.39 percent or 76.26 points to 19,351.55 and Chinese Shanghai Composite fell 0.48 percent or 11.20 points to 2,304.86.

Optimism over the Greek election outcome proved short-lived as the European shares and the euro reversed early gains Monday amid concerns over Spain's financial problems. The euro zone debt crisis once again took center stage after Spain's cost of borrowing hit fresh euro-era high.

Spanish benchmark 10-year bond yields soared to 7.13 percent, exceeding the 7 percent rate at which Greece, Ireland and Portugal were forced to seek financial aids, as doubt spread among bond investors that Europe's fifth-biggest economy will be able to service its expanding debt.

Meanwhile, latest data from Spanish central bank showed that bad debts in the country were at their highest in 18 years in April, sparking concerns that the 100 billion euro's bank ($126 billion) bailout might not be enough to bolster the national financial system, the Wall Street Journal reported.

Financial and property developers' shares declined in Hong Kong. HSBC Holdings Plc declined 1.04 percent and China Overseas Land & Investment Ltd plunged 3.41 percent after surging to a two-year high in the previous session.

Among other stocks, Cnooc Ltd. declined 1.55 percent and Esprit Holdings fell 2.44 percent while Tsingtao Brewery Co Ltd slumped 7.81 percent on news that its third biggest shareholder sold a HK$1.5 billion stake in the company at a discount.

Guangzhou Pharmaceutical climbed 8.66 percent Chinese media reported that the company announced details of its plans to merge with Shenzhen-listed Guangzhou Baiyunshan Pharmaceutical, Reuters reported.