LONDON (CNNfn) - Asian markets posted another subdued performance Tuesday with declines on all the region's major indexes as blue-chips came under more selling pressure.
In Tokyo, the benchmark Nikkei 225 ended down 188 points, or 0.96 percent, at 19,367.83. Weakness in bank stocks helped push the market lower in afternoon trading, after the index climbed as high as 19,689.
Hong Kong's Hang Seng index slumped in the afternoon session to close down 500 points, or 2.9 percent, as high-profile telecom stocks dropped after merger speculation drove them up sharply in recent sessions. Declines in banking shares had a similar effect in Singapore where the Straits Times index closed down 2 percent at 2,194.19.
Asia's performance followed a brighter session on Wall Street which saw all of the main indexes recover from sharp falls Friday. The Dow Jones industrial average closed up 94.63 points at 10,519.84, the Nasdaq added 23.10 to reach 4,418.55 and the broader S&P 500 ended 2.82 points higher at 1,389.94.
In Tokyo, the collapse of supermarket group Nagasakiya continued to shake the financial sector. The mid-sized retailer folded with debts of 330 billion yen ($3.02 billion), leaving creditors downbeat about the prospects of recovering their loans.
Dai-Ichi Kangyo Bank, the largest creditor, closed down 7 percent. Other banks exposed to the company also suffered a second session of losses. Industrial Bank of Japan lost 9 percent, Sakura Bank fell 7.4 percent and Bank of Tokyo-Mitsubishi ended almost 5 percent lower.
Nissan Motor offered some support to the Nikkei, ending 10.3 percent higher after agreeing Monday to sell its aerospace business, and as Lehman Brothers published an upbeat report on the company. Honda Motor lost 0.6 percent after posting a 23 percent fall in third-quarter operating earnings.
Internet investor Softbank closed little changed after an initial 10 percent surge on reports that it may join a consortium to take over the failed Nippon Credit Bank.
Consumer electronics manufacturer Toshiba was the Nikkei's most heavily traded stock, closing up 4.4 percent as some investors judged it had become under-valued.
In Hong Kong, C&W HKT closed down 7 percent after jumping nearly 50 percent in the previous week against the backdrop of a tussle to control the company. Pacific Century CyberWorks, which said Friday it was seeking a merger with HKT, ended almost 7 percent higher. Its shares were suspended Monday while the company carried out a $1 billion share placement.
Hutchison Whampoa and parent Cheung Kong Holdings, sharp risers last week on speculation that they would join PCCW in a bid for C&W HKT, dragged the main index lower as each lost 5.7 percent. China Telecom, which had benefited from interest in telecom takeovers, fell 4.2 percent, and SmarTone Telecom shed 5.7 percent..
Singapore Telecom, which remains in talks with C&W HKT, dragged Singapore's Straits Times index down with a 2.6 percent decline.
Banks also lost ground after firm gains Monday on expectations of strong 1999 earnings. DBS Group fell 2.3 percent and OCBC ended 4.7 percent lower.
Technology stocks tumbled, with Datacraft ending off 6 percent and Creative Technology down almost 5 percent.
Among smaller Pacific-Rim markets, the All Ordinaries in Sydney closed up 0.73 percent at 3,158.10, buoyed by a 2.7 percent climb for media heavyweight News Corp. and a 4 percent rise in shares of mining giant BHP.
The JSX index in Jakarta was the region's only other market to advance, closing up 0.5 percent at 636.90.
Seoul's Kospi benchmark index was again Asia's largest casualty, sliding 3.4 percent to close at 879.70 after its 4.4 percent fall Monday. Institutional selling of telecom shares was again cited as the primary driver of the market's fall.
In Manila, the PHS Composite lost almost 2 percent to close at 1,938.06 while the KLSE Composite in Kuala Lumpur ended 0.28 percent lower at 995.52.
In Bangkok, the Set index slumped 2.2 percent to end at 437.66 while weakness in tech stocks left Taiwan's Weighted index marginally lower at 9,957.74. The BSE 30 index in Mumbai, India's benchmark, ended 1 percent lower at 5,813.59. 
-- from staff and wire reports
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