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| Version 3 | Version 4 |
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| Greece crisis: markets begin to tumble as investors flee | Greece crisis: markets begin to tumble as investors flee |
| (about 1 hour later) | |
| Share prices began to plummet across Asia on Monday as hopes dwindled for a resolution to the Greek debt crisis. | Share prices began to plummet across Asia on Monday as hopes dwindled for a resolution to the Greek debt crisis. |
| Japan’s Nikkei stock average briefly fell by more than 500 points in early trading, while the euro dropped more than 3% to 133.80 yen, its lowest level for five weeks. The common currency fell as much as 1.9% to $1.0955, its lowest level in almost a month. | Japan’s Nikkei stock average briefly fell by more than 500 points in early trading, while the euro dropped more than 3% to 133.80 yen, its lowest level for five weeks. The common currency fell as much as 1.9% to $1.0955, its lowest level in almost a month. |
| Related: Greek debt crisis: the key points of Athens bank controls | |
| The Nikkei fell 2.1%, while MSCI’s broader index of Asia-Pacific shares outside Japan dropped 0.8%. US stock futures dived 1.8%, hitting a three-month low, while US Treasuries futures price gained almost two points. | The Nikkei fell 2.1%, while MSCI’s broader index of Asia-Pacific shares outside Japan dropped 0.8%. US stock futures dived 1.8%, hitting a three-month low, while US Treasuries futures price gained almost two points. |
| More than $35bn was wiped off the Australian stock market in the first hour of trading on Monday as investors brace for an increasingly likely Greek exit from the eurozone. | More than $35bn was wiped off the Australian stock market in the first hour of trading on Monday as investors brace for an increasingly likely Greek exit from the eurozone. |
| Turmoil in Asia had been widely expected after the failure of 11th-hour talks in Europe over the weekend raised the possibility of a Greek exit from the eurozone. | Turmoil in Asia had been widely expected after the failure of 11th-hour talks in Europe over the weekend raised the possibility of a Greek exit from the eurozone. |
| The embattled country looks set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs. On Monday morning Greeks will find their savings blocked and their banks closed for a week following a weekend that has shaken Europe’s single currency. The Athens Stock Exchange will not open on Monday either. | The embattled country looks set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs. On Monday morning Greeks will find their savings blocked and their banks closed for a week following a weekend that has shaken Europe’s single currency. The Athens Stock Exchange will not open on Monday either. |
| Despite the Chinese central bank’s monetary easing on Saturday, investors were seen flocking to safer assets on the spectre of an unprecedented debt default. | Despite the Chinese central bank’s monetary easing on Saturday, investors were seen flocking to safer assets on the spectre of an unprecedented debt default. |
| In Tokyo, manufacturers that rely on European sales were among the hardest-hit by early losses, along with banks and insurance companies. | In Tokyo, manufacturers that rely on European sales were among the hardest-hit by early losses, along with banks and insurance companies. |
| The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 37.67 points, or 2.26%, to 1,629.36. | The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 37.67 points, or 2.26%, to 1,629.36. |
| The US Treasury secretary, Jack Lew, stressed the need for Greece “to take necessary steps to maintain financial stability” ahead of the referendum. | The US Treasury secretary, Jack Lew, stressed the need for Greece “to take necessary steps to maintain financial stability” ahead of the referendum. |
| He told the Greek prime minister, Alexis Tsipras, on Sunday that Athens and its creditors needed to continue working toward a resolution ahead of a Greek referendum on 5 July on the creditors’ demands for austerity. | He told the Greek prime minister, Alexis Tsipras, on Sunday that Athens and its creditors needed to continue working toward a resolution ahead of a Greek referendum on 5 July on the creditors’ demands for austerity. |
| A cash-strapped Greece looks certain to miss its debt repayment on Tuesday as Greece’s European partners shut the door on extending a credit lifeline after Greece’s surprise move to hold a referendum on bailout terms. | A cash-strapped Greece looks certain to miss its debt repayment on Tuesday as Greece’s European partners shut the door on extending a credit lifeline after Greece’s surprise move to hold a referendum on bailout terms. |
| Fear of an imminent default by Greece hit Greek banks, a major buyer of Greek government bills, triggering bank runs at weekend and forcing Tsipras to announce a bank holiday on Monday and capital controls. | Fear of an imminent default by Greece hit Greek banks, a major buyer of Greek government bills, triggering bank runs at weekend and forcing Tsipras to announce a bank holiday on Monday and capital controls. |
| In a brief televised address to the nation, Tsipras threw the blame onto the leaders of the eurozone. But he did not say how long the banks would remain shut, nor did he give details of how much individuals and companies would be allowed to withdraw once they reopened. | In a brief televised address to the nation, Tsipras threw the blame onto the leaders of the eurozone. But he did not say how long the banks would remain shut, nor did he give details of how much individuals and companies would be allowed to withdraw once they reopened. |
| All over Athens people queued at cash machines, particularly outside National Bank branches because the National Bank supplies the banknotes, and lots of other Greek banks, by midnight on Sunday, had no more of those. | All over Athens people queued at cash machines, particularly outside National Bank branches because the National Bank supplies the banknotes, and lots of other Greek banks, by midnight on Sunday, had no more of those. |
| Other European banks have limited exposure to Greece. | Other European banks have limited exposure to Greece. |
| Any speculative selling in debts of such countries as Italy, Spain and Portugal, will likely be countered by the European Central Bank, which started buying eurozone sovereign debts from markets in March to shore up the economy. | Any speculative selling in debts of such countries as Italy, Spain and Portugal, will likely be countered by the European Central Bank, which started buying eurozone sovereign debts from markets in March to shore up the economy. |
| Related: Australian shares plunge as $35bn wiped off stock market over Greek crisis | |
| Yet the perception could change if investors grow more worried about the future of the currency union. | Yet the perception could change if investors grow more worried about the future of the currency union. |
| Yasunobu Katsuki, a senior analyst at Mizuho Securities, said: “Financial markets will say ‘it’s all Greek to me’. Markets will reset their trend until last week and will start the week with risk aversion.” | Yasunobu Katsuki, a senior analyst at Mizuho Securities, said: “Financial markets will say ‘it’s all Greek to me’. Markets will reset their trend until last week and will start the week with risk aversion.” |
| Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group in Tokyo, told Bloomberg News: “In the face of pressure from the eurozone to accept austerity measures, the Greeks answered that it’s hard to live just on water.” | Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group in Tokyo, told Bloomberg News: “In the face of pressure from the eurozone to accept austerity measures, the Greeks answered that it’s hard to live just on water.” |
| “Carrying out a referendum buys the Greek side some time. Digesting the worst possible scenario of a Greek default, global stock markets could fall 1 to 2% today.” | “Carrying out a referendum buys the Greek side some time. Digesting the worst possible scenario of a Greek default, global stock markets could fall 1 to 2% today.” |
| Reuters contributed to this report | Reuters contributed to this report |