TOKYO: Japanese stocks fell as the yen strengthened after Greek voters rejected austerity demanded by creditors, endangering the nation’s future in the euro zone.
Tosoh Corp. plunged 9.3 percent as the chemicals maker led declines on the Nikkei 225 Stock Average. Toshiba Corp. tumbled 1.4 percent after a report the electronics maker plans to cut past earnings by as much as 150 billion yen ($1.2 billion) following accounting problems. Retailer Aeon Co. led gains among just eight stocks that rose on the Nikkei 225.
The Topix lost 1.6 percent to 1,625.55 as of 12:37 p.m. in Tokyo, with all but one of its 33 industry groups dropping. The Nikkei 225 dropped 1.7 percent to 20,184.80. The yen, regarded as a haven, gained 0.9 percent to 135.26 per euro and added 0.2 percent against the dollar.
“There’s nothing we can do now except lower our risk and wait,” said Ayako Sera, a strategist at Sumitomo Mitsui Trust Bank Ltd., which manages the equivalent of $163 billion. “The euro was created based on this great dream of a unified Europe, and if they withdraw from the euro then the whole system is going to come into question.”
With all ballots counted, Greeks have voted 61.3 percent to back Prime Minister Alexis Tsipras in rejecting austerity measures required to win another bailout package, according to figures posted on the Interior Ministry’s website. The results mean Greece exiting the currency union is now the base-case scenario, JPMorgan Chase & Co. said. Polls last week had indicated the vote would be too close to call.
