TOKYO: Japanese stocks thudded lower Monday morning, as odds for Greek debt default rose over the weekend, with Athens announcing a referendum on its bailout terms.
The Nikkei Stock Average NIK, -2.20% plunged 2.3% in the opening minutes, with the Topix I0000, -1.98% down 2.6%. The yen rallied on safe-haven buying as investors streamed out of the euro, with the dollar USDJPY, +0.00% dropping to ¥123.05 from ¥123.87 on Friday, though off its lows below the ¥123 handle. Companies with large exposure to the European market saw their shares hit especially hard, with Mazda Motor Corp. 7261, -3.92% MZDAF, -2.98% for instance, dropping 4.9%. Likewise, banking stocks began pricing in the resulting volatility across the markets for forex, bonds and other asset classes. Among the top financial shares, Mitsubishi UFJ Financial Group Inc. 8306, -2.84% MTU, +1.50% fell 3.5%, Mizuho Financial Group Inc. 8411, -3.13% MFG, +2.06% retreated 4.2% and Sumitomo Mitsui Financial Group Inc. 8316, -2.46% SMFG, +1.12% surrendered 3.6%.
