Stocks in Hong Kong tumbled after Greeks rejected bailout terms, while China’s shares stabilized amid Beijing’s efforts to prop up markets.
In Tokyo, the Nikkei 225 index dumped 427.67 points, or 2.1%, to 20,112.12
In Hong Kong, the Hang Seng Index collapsed 827.83 points, or 3.2%, to 26,236.28, its worst one-day performance since 2012. The index is down 11.3% since its April high, entering correction territory, defined as a drop of more than 10%. A gauge of Hong Kong-listed Chinese companies, known as H-shares is down 3.6%. Hong Kong had largely avoided the roller-coaster trading that wiped out about $2.4 trillion in value from Chinese shares during a three-week decline.
Investors whisked the most capital out of China via the Stock Connect than on any day since the trading link between Hong Kong and Shanghai launched in November. A total of 12.5 billion yuan ($2.01 billion U.S.) was withdrawn over the course of the trading day.
Asian shares also are lower after results of Greece’s referendum Sunday show a victory for the “no” campaign, which rejected austerity policies set out by the euro-zone and the International Monetary Fund. Creditors have said the outcome imperils future compromise and puts Greece closer to leaving the currency bloc.
The euro sank 0.6% to $1.1053 U.S. and fell 0.8% against the Japanese yen as investors sought safer assets. The yen rose 0.2% against the dollar. Gold prices rose 0.2% to $1,166.20 U.S. per troy ounce, while Brent crude futures dropped 1% to $59.69.
CHINA
In China, the CSI 300 moved up 112.52 points, or 2.9%, to 3,398.54
China’s indexes also cooled after an initial spike earlier Monday, off more than a quarter from highs reached in June.
Chinese officials have turned to an array of tools to prop up the market in recent days: from encouraging stock buying with borrowed money to rallying state-affiliated firms to invest. Now, China’s central bank indirectly will help investors borrow to buy shares and regulators over the weekend also agreed to halt all new initial public offerings.
Late Sunday, the top securities regulator said the People’s Bank of China would “provide liquidity assistance” to China Securities Finance Corp., a company owned by the stock regulator. The company will use the money to lend to brokerages, which could then make loans to investors to buy stocks. It marks the first time central-bank funds will be directed to institutions other than banks.
Earlier in the weekend, China’s big state-controlled securities firms, mutual funds and a unit of China’s giant sovereign-wealth fund also pledged to buy shares. The Securities Association said that 21 brokerages pledged to try to increase investments in the stock market as long as the Shanghai Composite Index stays below 4,500.
In other markets
The Taiex index in Taiwan ditched 102.27 points, or 1.1%, to 9,255.96
In Korea, the Kospi index slid 50.48 points, or 2.4%, to 2,053.93
In Singapore, the Straits Times Index let go of 9.79 points, or 0.3%, to 3,332.94
The NZX 50 subtracted 64.27 points, or 1.1%, to 5,776.63
The ASX 200 Index stepped back 63.29 points, or 1.1%, to 5,475
