Asian markets tumbled on Tuesday, bringing a recent rally to a juddering halt, as Wall Street and European shares were hit by political concerns in Spain and Italy.

The euro also slumped as Spain’s prime minister was forced to deny corruption claims, while former Italian premier Silvio Berlusconi vowed to throw a spanner in the works of a government austerity drive ahead of a general election.

Tokyo shares lost 0.94 per cent, Hong Kong tumbled 1.54 per cent, Sydney shed 0.70 per cent, Shanghai was 0.39 per cent off and Seoul slipped 0.88 per cent in morning trade.