Japan's Nikkei 225 Stock Average fell Tuesday as early investor excitement on the bailout for Spanish banks subsided to revive concerns about the debt crisis looming over the euro zone.

The Nikkei declined 1.28 percent or 110.14 points to 8,514.76 and the Topix index fell 1.38 percent or 10.09 points to 719.98. Among major losers were Panasonic (3.5 percent), Mazda Motors (2 percent) and Canon (0.8 percent).

Investors are concerned that though Spain's banking bailout may help pull the country away from the eye of the euro zone storm for a while, it may not be enough to rescue it from the financial crisis, dragging down market sentiments.

Over the weekend, euro zone finance ministers agreed to lend 100 billion euros ($125 billion) to Spain in order to overcome its banking crisis. Given the negative response in financial markets to the mounting euro zone debt crisis, the agreement on the bailout package for Spain will bring respite only for a short time.

The rising borrowing costs of Spain and its troubled banking system have added to the debt crisis woes of the euro zone. The agreement to lend the money came after the euro group noted that Spain had implemented significant fiscal and labor market reforms and measures to strengthen the capital base of the Spanish banks.

But bringing down the confidence of market players were Spain's own position and the experience of other bailouts, which cast doubt on how effectively the package will address the country's problems. Investors fear that Spain's government will eventually need a bailout as well.

Investors are also apprehensive as Greek elections to be held Sunday draw closer. There is also revival of investor concerns on the Greek exit from the euro zone, which, if it happens, could significantly disrupt global financial markets.