Asian markets were roiled Monday, as China’s stocks closed in bear-market territory, and uncertainty about Greece shook sentiment across the region.
In Tokyo, the Nikkei 225 index plummeted 596.20 points, or 2.9%, to 20,109.95
The yen strengthened 1.7% against the euro, as investors piled into the Japanese currency, which is considered a safe-haven in times of financial stress.
In Hong Kong, the Hang Seng Index collapsed 696.89 points, or 2.6%, to 25,996.98, its biggest one-day loss in more than a year, while offshore listings of Chinese companies, known as H-shares sank 3%.
CHINA
In China, the CSI 300 dropped 144.64 points, or 3.3%, to 4,191.55,
A move by China’s central bank over the weekend to cut interest rates failed to give a sustained lift to China’s main stock market, which has fallen 21.5% from a high on June 12, crossing the 20% threshold that defines a bear market. Stocks have been under pressure over the past two weeks after a yearlong debt-fueled rally.
Some analysts warned that selling in China could continue Monday as investors who have borrowed heavily to fund stock purchases — through taking on margin debt — are forced to sell to repay brokers.
On Saturday, China’s central bank cut its benchmark lending rate by 25 basis points to 4.85% and its one-year deposit rate by the same amount to 2%. China’s central bank also lowered the amount of capital that banks must hold in reserve for some lenders in a bid to free up money for new loans.
In other markets
The Taiex index in Taiwan went south 666.79 points, or 6.7%, to 9,236.10
In Korea, the Kospi index gave up 29.77 points, or 2%, to 2,060.49
In Singapore, the Straits Times Index docked 40.72 points, or 1.2%, to 3,280.18
The NZX 50 fell 49.63 points, or 0.9%, to 5,705.81
The ASX 200 Index slipped 123.4 points, or 2.2%, to 5,422.49
