Asian Equities Lower after U.S. Jobs and Greece

Asian equity markets witnessed a selloff on Friday, as a soft U.S. jobs report and Greece’s Sunday referendum weighed on sentiment.  Chinese stocks were the hardest-hit, with the Shanghai Composite index down as much as 6.3 percent in the first hour of trade, following news that the China Securities Regulatory Commission (CSRC) had set up a team to look at “clues of illegal manipulation across markets.”

Greek Prime Minister Alexis Tsipras has been urging his country to reject the bailout in a “no” vote that could accelerate the country’s exit from the euro zone. The only full survey to be released since the referendum was announced on Saturday showed the “no” vote ahead, but falling sharply after the announcement that banks in Greece would be shut.

“A ‘No’ vote is a very real prospect. Greek finance minister Yanis Varoufakis stated he and several other members of the Syriza party will resign if the ‘Yes’ vote wins, meaning a new Greek election will be a likely outcome. This also means more uncertainty,” wrote IG market strategist Evan Lucas in a note.


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