Japanese stocks fell and the yen strengthened as investors sought haven assets after Greek voters rejected austerity demanded by creditors, endangering the renegade nation’s future in the euro zone.

The Topix lost 1.5 percent to 1,627.15 as of 9:01 a.m. in Tokyo, with all of its 33 industry groups declining. The Nikkei 225 Stock Average dropped 1.6 percent to 20,209.49. The yen, regarded as a haven, gained 1.3 percent to 134.60 per euro and added 0.3 percent against the dollar.

With all ballots counted, Greeks have voted 61.3 percent to back Prime Minister Alexis Tsipras in rejecting austerity measures required to win another bailout package, according to figures posted on the Interior Ministry’s website. The results mean Greece exiting the currency union is now the base-case scenario, JPMorgan Chase & Co. said. Polls last week had indicated the vote would be too close to call.

E-mini futures on the Standard & Poor’s 500 Index dropped 1.2 percent from Thursday. U.S. markets reopen Monday after a holiday on Friday.

The weekend Greek verdict turns the tables on German Chancellor Angela Merkel and her counterparts across Europe, who must decide if a financial rescue of the region’s most indebted country is still possible. It significantly raises the chances of a Greek exit from the single currency, as the country’s banks run out of cash and its economy staggers toward all-out collapse.

Source : Bloomberg