TOKYO: Tokyo stocks have plunged more than two per cent, with investor sentiment hit by fears of a Greek default, which has also pushed up the yen.
The Nikkei 225 index at the Stock Exchange fell 2.25 per cent, or 466.52 points, to 20,239.63 in the first few minutes of trade on Monday.
The yen, considered a safe haven in time of financial turmoil, strengthened – a negative to Japanese exporters, whose products abroad become more expensive.
The Japanese currency fetched 135.38 to the euro and 122.96 to the US dollar, much stronger than 138.26 and 123.89 in US trade Friday.
The euro fell to $US1.0952 in Asia early on Monday from $US1.1160 in New York on Friday, before edging up to $US1.1012 later on Monday.
The 19-nation currency was battered by concerns that Greece was headed for financial collapse and a possibly messy exit from the common currency.
Greece broke off deadlocked talks with creditors on the weekend, despite the June 30 due date of a massive repayment to the IMF.
Greek Prime Minister Alexis Tsipras called a surprise July 5 referendum on the creditors’ latest bailout proposals.
Eurozone finance ministers accuse Greece of breaking off talks “unilaterally” and refuse to extend its bailout past June 30, heightening fears of a Greek default and its exit from the euro.
