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Greek referendum: Asian markets fall sharply after Greece no vote – live Greek referendum: Asian markets fall sharply after Greece no vote – live
(35 minutes later)
12.10pm AEST03:10
'We're going to hit the iceberg'
From the Syriza faithful to the run-down docks of Piraeus and the middle-class district of Faliro, Greeks spent the day of the referendum locked in debate, suspense and catharsis.
For some it was a day they sent a message to Europe that they will ‘not be intimidated’. But many Greeks fear trouble lies ahead. As one voter said, both a yes and no outcome would result in calamity: ‘We’re three metres from the iceberg and we’re here to be asked if we’re going to go right or left.’ Either way, he said, ‘we’re going to hit the iceberg’.
11.55am AEST02:55
Shanghai stocks have jumped almost 8%. The government boosts AFP refers to are emergency measures taken to prevent a possible stock market crash in the world’s second-largest economy. It’s not directly related to Greece, but could still have an effect on world markets.
From Reuters: In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.
China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.
#BREAKING Shanghai stocks surge 7.82% at open after govt boosts
11.37am AEST02:3711.37am AEST02:37
Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.
Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:
Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.
But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.
What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.
Ouch.Ouch.
Updated at 11.38am AESTUpdated at 11.38am AEST
11.32am AEST02:3211.32am AEST02:32
As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.
Worst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1UsWorst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1Us
11.21am AEST02:2111.21am AEST02:21
Justin McCurryJustin McCurry
Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.
The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
South Korea’s Kospi was down 0.9% at 2,085.67.South Korea’s Kospi was down 0.9% at 2,085.67.
11.08am AEST02:0811.08am AEST02:08
Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.
You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.
That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?
All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.
Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”
10.58am AEST01:5810.58am AEST01:58
The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.
The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.
The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.
The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.
Updated at 10.59am AESTUpdated at 10.59am AEST
10.39am AEST01:3910.39am AEST01:39
In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:
“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.
But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”
Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.
10.27am AEST01:2710.27am AEST01:27
SummarySummary
While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.
You can relive the night blow by blow here, or Graeme’s summary is below.You can relive the night blow by blow here, or Graeme’s summary is below.
Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.
In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].
As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.
Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.
In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.
“You made a very brave choice.“You made a very brave choice.
“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”
Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.
German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.
Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.
Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:
“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”
But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.
A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:
“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”
Finance minister Yanis Varoufakis, though, has denied this is an option:Finance minister Yanis Varoufakis, though, has denied this is an option:
Updated at 10.29am AESTUpdated at 10.29am AEST
10.20am AEST01:2010.20am AEST01:20
Japan, S Korea, Australia markets open downJapan, S Korea, Australia markets open down
Futures tradingFutures trading
The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.
Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.
Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.
He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.
10.05am AEST01:0510.05am AEST01:05
Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.
“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.
“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”
Over to you Mario Draghi.Over to you Mario Draghi.
Updated at 10.14am AESTUpdated at 10.14am AEST
10.01am AEST01:0110.01am AEST01:01
All votes counted - Greece votes noAll votes counted - Greece votes no
All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.
9.56am AEST00:569.56am AEST00:56
Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.
Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.
The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.
The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.
Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.
9.52am AEST00:529.52am AEST00:52
Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”
However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”
9.52am AEST00:529.52am AEST00:52
Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.
No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.
Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.