Exception of China, Asian Equities Hurt by Greece Vote

Stock markets in China received a boost from a flurry of official policy moves over the weekend, while investors in other regional markets sought safer havens for their investments on Monday after Greece voted ‘No’ to harsh bailout conditions.

In a crucial referendum held on Sunday, 61 percent of voters rejected the terms of new financial aid which included demands for tax hikes and pension cuts in Greece. The result – more definitive than polls had predicted – will likely increase Greece’s chances of exiting the euro zone.

“The unexpected ‘no’ vote in the Greek referendum will produce significant uncertainty over the next 48 hours. It will be very difficult for a new deal to be struck without significant concessions from the Greeks while [Prime Minister Alexis] Tsipras’ victory will make that unlikely,” analysts from BNP Paribas wrote in a note, adding that the chance of a “Grexit” is now at 70 percent.