Nikkei 225 drops on Spanish downgrade

Japan's Nikkei Stock Average fell on Tuesday as hopes for large scale Chinese stimulus faded. Moreover Spanish debt downgrade and surging borrowing costs weighed on investor sentiment. Nikkei 225 index dropped 0.28% or 23.89 points to 8,633.19 with financials tumbling most. On the upside Olympus jumped 4% on rumours the company is considering a capital alliance with Panasonic. Aozora Bank plunged 7.1% after postponing plans to declare a public-fund repayment in June. Bank has failed to arrive at agreement with government and investors.