Amid growing concerns that the escalating problems in the financial sector worldwide would intensify the economic crisis, Asian share prices were gratingly lower on Tuesday. Even the UK government's announcement of a second bank rescue plan appeared to have failed in restoring confidence in the shaky financial sector.

With the news of Royal Bank of Scotland (RBS) projecting the biggest-ever corporate loss in Britain, banking giant HSBC fell further. Registering a 7 percent fall, HSBC extended its 16.6 percent slip over the six earlier trading sessions, on continual fears about a possible dividend-cut and capital-raising.

Among the chief decliners along with HSBC were Japanese top lender Mitsubishi UFJ Financial Group, and contract handset manufacturer Foxconn International. Assets considered relatively "safer" - like the Japanese yen and regional bonds - benefited from the spreading caution.

Justin Gallagher, head of Sydney sales trading at ABN AMRO, said: "The market is refocusing on the bigger global picture," and added that the weak corporate earnings are anticipated in the coming weeks.

While the euro fell to a six-week low, and Sterling dropped to its lowest in nearly seven years; US stock futures wilted, pointing to a hard day ahead for Wall Street.

According to Patrick Yiu, associate director CASH Asset Management, "HSBC led the major falls as it continued to seek a bottom after sharp falls in London. The bank's comments that it doesn't need UK government help raised worries about a capital-raising via a right issue."