Asian markets opened lower on Monday after Greek voters overwhelmingly rejected austerity demands from creditors in a weekend referendum.
The euro fell across the board after Greece rejected the conditions of a bailout package, increasing the odds of the country’s exit from the eurozone.
The euro was at $1.1014 in Asian trade, recovering from one-month lows it hit earlier in the day.
Japan’s Nikkei 225 index was down 1.4% to 20,247.22 in early trade.
Investors fled to the safe haven of the yen that rallied against the dollar and euro after Greek voters rejected the bailout terms by a wider margin than expected.
The euro fell 1.5% to a six-week low of 133.700 yen, but then recovered some losses to trade up to 134.53. However, it is still down from its Friday closing figure of 136.185 yen.
Major commodities such as oil prices were also down with Brent crude falling more than 1% to $59.60 in Asian trade.
Officials step in
Governments and central banks in South Korea and Japan were set to meet later in the morning to handle the impact on the markets from Greece’s “no” vote, they said.
“The direct economic and financial relations between Japan and Greece are limited. But government and BOJ (Bank of Japan) officials have held discussions” early this morning to ensure Japan responds smoothly to any market response as needed, Governor Haruhiko Kuroda said in a statement.
In South Korea, the benchmark Kospi index was down 1.3% to 2,076.68.
Meanwhile, Australia’s SP/ASX 200 index fell 1.5% to 5,454.10 after closing up on Friday.
Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors said that while the Greek no vote means more uncertainty ahead for the euro zone, the impact on the markets will be short lived.
“The threat of a flow on to other eurozone countries is likely to keep markets on edge in the short term,” he said in a note.
“However, contagion is likely to be limited as the rest of Europe is now in far stronger shape than was the case in the 2010-12 euro zone crisis and defence mechanisms against contagion are now stronger.”