By Andrew Jay Rosenbaum and Bahattin Gonultas
ATHENS
Stocks fell, but the euro held up after the "No" vote in the Greek bailout referendum on Sunday.
Asian stocks were lower: Japan's Nikkei stock index was down 1.6 percent ; South Korea's Kospi dropped 1.6 percent, and Hong Kong's Hang Seng index lost 1.1 percent after Greeks voted 61 percent against bailout proposals from its European creditors.
The euro dropped to about 1.09 against the U.S. dollar in Sunday night trading, but came back to trade again in a narrow band between 1.10 to 1.11 to the U.S. dollar. The Turkish lira held at about 2.70 as of Monday morning.
The vote caused dismay and anger among Greece's creditors. Eurogroup head Jeroen Dijsselbloem told the press on Sunday night: "The vote is very regrettable for the future of Greece. For the recovery of the Greek economy, difficult measures and reforms are inevitable, and we will now wait for the initiatives of the Greek authorities".
German Vice Chancellor Sigmar Gabriel told a German newspaper that the Greek government was leading its people "onto a path of bitter austerity and hopelessness”. Gabriel alleged Tsipras “has torn down the last bridges, across which Europe and Greece could move toward a compromise".
Banks are still closed in Greece on Monday, and capital controls limit ATM withdrawals to a maximum of €60.
The past week saw the country’s bailout program expire on Tuesday when it went into arrears on a €1.5 billion ($1.7 billion) repayment to the International Monetary Fund. Greece is now ineligible for further IMF funding pending a board decision on future aid.
Greek Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis have been at the forefront of calls for a “No” vote, claiming it would give the government greater power in its negotiations with creditors. In a surprise development, Varoufakis announced his resignation Monday, just a day after the Greek bailout referendum.
European Commission President Jean-Claude Juncker had warned that Greece risked being thrown out of the euro system in case of a “No” vote. Eurogroup leaders are meeting on Tuesday to discuss further steps.
Thousands of government supporters started to celebrate in Athens' Syntagma Square, chanting "Ohi, Ohi" (No, No) after the referendum.
Tsipras said the result shows “democracy won't be blackmailed” in his TV address after the poll.
"A strong national front must be created to seek an immediate solution for the debt crisis with creditors," he told the country's President Prokopis Pavlopoulos on Sunday.
Greece’s main opposition leader and former premier Antonis Samaras resigned after the vote; his party had supported a “Yes” vote.
European stock futures show that exchanges are expected to open lower later this morning.
