The fresh concerns about Italy's fiscal weakness, combined with ongoing worries about whether Greece can avoid a potentially destabilizing default triggered risk aversion selloff among equities.

Investor shifted away from risk-taking behavior, dampen demands for the higher-yielding assets such as stocks, commodities and the higher yielding currencies, as fresh concerns about eurozone financial stability, this time focusing on Italy on warnings of a possible downgrade by ratings agency Moody's and yields on Italian government bonds surged.

The Greek parliament is set to vote this week on a package of deep austerity cuts designed to prevent a potentially destabilising default. The $40 billion package of cuts is deeply unpopular, but has been demanded by the European Union and the International Monetary Fund as a precondition for further support.

Market participant are having fears that the deep budget austerity cut measures if failed to pass by Greece parliament on Wednesday are likely to trigger a further market sell-off.

Bourses of Australia, Japan, South Korea, New Zealand, Hong Kong, Indonesia, Singapore, and Malaysia ended below equatorial line, tracking the weak performance of US and European markets following the continued easing in oil price and slightly higher uncertainty on Greece's bailout. On the other side, China's Shanghai Composite continued bull for fifth day in row, while the Indian benchmark BSE for third straight day as investors reshuffled their portfolios in favour of growth.

Market volume turnover was relatively light as many participant awaiting sideline ahead to US economic data, including personal income and consumption numbers due later Monday.

The Australian sharemarket ended steep lower, dragging the benchmark All Ordinaries index 1.12% lower at 4,513.80, as investors shunned riskier equities amid concerns over Greek debt contagion fears.

The Japanese stockmarket ended with sour note, with the benchmark Nikkei Stock Average tumbled 1.04% while the broader Topix index sank 0.91%, as investors offloaded riskier equities as of strengthening yen against the euro and concerns over Greek debt contagion fears. Meanwhile concerns over political instability also dampen risk sentiment.

Bucking the Asian market trend, bull dominated the Chinese stockmarket for fifth straight day, with the benchmark Shanghai Composite index up 0.44% higher at 2,758.23, a highest level since May 24 when index closed at 2,767.06 as concerns over further rate hikes calmed down after Premier Wen Jiabao comment that it's possible to cap inflation below 5.0% this year.

India's benchmark the BSE Sensex was up 1%, powered by strong gains in oil & Gas and PSU players after the Government last week hiked the prices of diesel, cooking gas and kerosene besides tweaking the duties to help improve the fiscal health of the public sector oil companies.

Moving to currencies, US dollar strengthened against the major currency, as investors continued to favor safer assets on lingering concerns about the Greek debt crisis and sign of weak global economy.

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