Japanese stocks fell, joining a global retreat, after Greece became the first country to defer a payment to the International Monetary Fund since the 1980s as its game of brinkmanship with creditors goes down to the wire.

The Topix index dropped 0.6 percent to 1,663.62 as of 9:01 a.m. in Tokyo, headed for its first weekly loss in a month. The Nikkei 225 Stock Average lost 0.5 percent to 20,396.35. The MSCI World Index fell to its lowest level in a month after Greek Prime Minister Alex Tsipras rejected demands his country continue harsh fiscal reforms in exchange for bailout funds and German Chancellor Angela Merkel said “we’re still far from reaching a conclusion.”

Greece on Thursday told the IMF it would delay a debt payment of about $339 million due Friday, submitting a request to the fund to bundle payments totaling about $1.7 billion due this month into one lump-sum payment.

Greece also rejected the latest proposal from its international creditors, with the Finance Ministry saying the plan “can’t solve the riddle” and an agreement requires “immediate convergence of the institutions to more realistic” proposals.

E-mini futures on the Standard & Poor’s 500 Index slipped 0.1 percent after the underlying measure slumped 0.9 percent to a one-month low on Thursday in New York.

Source : Bloomberg