Asian markets buckled on Monday on news that Greece has rejected more austerity measures proposed by its creditors during the July 5 historic referendum, making way for its possible exit from the eurozone and spark further volatility across capital markets everywhere.
The euro rose Monday after Greece's Finance Minister Yanis Varoufakis announced his shock resignation, just hours after the cash-strapped nation rejected creditors' austerity demands in a landmark weekend referendum.
A Greek default would have limited impact on the European economy and a very small impact on the Asian economy, DBS Group Holdings chief executive Piyush Gupta said on Monday, after Greece voted a resounding 'No' to further austerity measures in return for bailout funds that could see it crash out of the eurozone.
Malaysia's ringgit hit a 16-year low on Monday as political tensions mounted over a report that linked Prime Minister Najib Razak to probes into alleged corruption involving state fund 1MDB. The ringgit fell as much as 0.8 per cent to 3.8070 per US dollar, its weakest since May 1999.
China's benchmark index fell, erasing the biggest intraday gain since 2008, as a fresh round of government measures to stem US$3.2 trillion of losses failed to spark gains outside the nation's largest state-run companies.