TOKYO: Tokyo stocks tumbled 1.08 per cent in early trade on Monday after anti-austerity party Syriza swept to victory in Greece’s snap elections, sending the euro to a new 11-year low versus the dollar.
The Nikkei 225 index at the Tokyo Stock Exchange was down 188.89 points to 17,322.86 at the start.
The euro was trading at US$1.1169 at 1240 GMT after dipping to US$1.1088 in Tokyo early morning trade, the lowest level since September 2003.
Syriza was victorious in Sunday’s general elections but was fighting to secure an absolute majority in parliament that would enable it to govern alone.
The victory posed a new challenge to the debt-hit country’s international bailout programme and a Syriza win has ignited fears about the possibility of Greece’s exit from the eurozone.
In Japan, official data on Monday showed the country’s trade deficit expanded to a record US$109 billion last year, but lower oil prices were likely to narrow the trade balance, analysts said.
US stocks closed mostly lower Friday, ending a four-day winning streak, as the sheen came off the European Central Bank’s stimulus announcement and profit taking set in.
The Dow Jones Industrial Average ended down 0.79 per cent on Friday after advancing 1.5 per cent the previous day In forex trading on Monday, the dollar was at 117.66 yen compared with 117.80 yen in US trade Friday.
