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Nikkei tumbles on Greek 'No' vote, yen's rise; Toshiba dives
July 6, 2015 / 2:09 AM / in 2 years

Nikkei tumbles on Greek 'No' vote, yen's rise; Toshiba dives

* Toshiba dives 5 pct on renewed fears on accounting errors
    * ECB's safety net likely limit contagion - analyst
    * Kuroda's comment on stimulus triggers hopes for ETF buying
- analyst

    By Ayai Tomisawa
    TOKYO, July 6 (Reuters) - Japan's Nikkei share average fell
on Monday, with financial stocks and exporters leading the
declines, after Greeks  overwhelmingly rejected austerity
measures demanded in return for bailout money, throwing the euro
zone into turmoil.
    The Nikkei share average was down 1.4 percent at
20,242.79 points by mid-morning, after falling to as low as
20,195.76 earlier.
    Mitsubishi UFJ Financial Group and Mizuho Financial
Group fell 2.5 percent and 2.1 percent, respectively.
    As the euro slumped in reaction to the Greek referendum, the
safe-saven yen rallied to 121.700 yen against the dollar,
from 122.775, dragging down exporters.
    Honda Motor Co shed 1.8 percent and Panasonic Corp
 declined 2.2 percent. The dollar last stood at 122.59
    "This is a serious problem for Greece. However, most people
think the impact to the global economy and Japanese stocks is
limited," said Norihiro Fujito, senior investment strategist at
Mitsubishi UFJ Morgan Stanley Securities.
    "Unlike the European crisis in 2011 and 2012, the ECB has
set up an important safety net this time."
    ECB policysetters are likely to maintain emergency funding
for Greek banks at its current restricted level, people familiar
with the matter said on Sunday. 
    Bank of Japan Governor Haruhiko Kuroda said the BOJ will
monitor market developments in the wake of Greece's decision. He
also reiterated that the bank will maintain its massive monetary
stimulus for as long as needed to achieve its 2 percent
inflation target. 
    "Since Kuroda made a comment about the stimulus, there are
expectations that the BOJ will buy exchange-traded funds this
afternoon if the market stays low," Fujito said.
    Underperforming the market was Toshiba Corp, which
dived 5 percent on fears that a probe into past accounting
practices was finding more irregularities than previously
    A source familiar with the matter said on Saturday that
Toshiba may need to mark down past earnings by over 100 billion
yen ($818 million), more than double earlier estimates.
    The broader Topix dropped 1.2 percent to 1,631.75,
with all of its 33 subsectors falling.
    The JPX-Nikkei Index 400 shed 1.2 percent to

 (Editing by Kim Coghill)

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