BEIJING (AP) – Asian stock markets sank Monday after Greece closed its banks and imposed capital controls in a dramatic turn in its struggle with heavy debts.
Oil prices declined and the euro edged down against the dollar after Athens announced the moves to stanch the flow of money out of Greek banks and put pressure on creditors to offer concessions before a bailout program expires Tuesday.
Tokyo’s Nikkei 225 index fell 2 percent to 20,283.98 points. The Shanghai Composite Index was off 0.4 percent at 4,178.56 despite China’s surprise weekend interest rate cut.
Hong Kong’s Hang Seng lost 1.7 percent 29,192.67. Seoul’s Kospi shed 1.6 percent to 2,057.52 and Sydney’s S&P ASX 200 was off 1.8 percent to 5,447.80. Market benchmarks in Taiwan, Singapore and New Zealand also fell sharply.
After an 8-hour session, Greece’s Cabinet decided banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. The Athens Stock Exchange will also be closed Monday. The developments follow Prime Minister Alexis Tsipras’ sudden weekend decision to call a referendum on European and International Monetary Fund proposals for Greek reforms in return for vital bailout funds.