DHAKA: Shares in Asia opened lower on Monday in the first market reaction to Greece’s decision to close its banks and impose capital controls limiting the amount of money which can be withdrawn.

Japan’s Nikkei 225 index was down 1.81% at 20,331.57 in mid-morning trade.

In Australia, the benchmark S&P/ASX 200 was down 1.85% at 5,444.40 points.

In China, the main benchmark index opened up almost 1% before making a dramatic reversal.

The Shanghai Composite continued to trade erratically for much of the morning. It was down 1.66% at 4,118.30 points in mid-morning trade.

While in Hong Kong, the Hang Seng index was down 1.73% at 26,206.84 after closing down 1.8% on Friday.

Greece is due to make a €1.6bn payment to the International Monetary Fund (IMF) on Tuesday.

But the country’s current bailout expires on the same day and the European Central Bank (ECB) has said that it will not increase emergency funding.

Economist Daniel Martin from Capital Economics told the BBC the current situation was ‘the closest Greece had come to exiting the eurozone’ and that it would likely be a bad week for Asian markets.

Greek banks are expected to stay shut until 7 July, two days after Greece’s planned referendum on the terms it had been offered by international creditors for receiving fresh bailout money.

The Athens stock exchange will also be closed on Monday.

BDST: 1154 HRS, JUN 29, 2015
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