Peace and Freedom

Investors look to safe havens after ‘No’ vote in Greek referendum, while HK index dives 3pc, its sharpest one-day fall in over three years

By Jeanny Yu and Enoch Yiu

Greek borrowers line up to withdraw funds from their bank yesterday amid a potential euro crisis that is unsettling global markets. Photo: AP

Hong Kong’s benchmark Hang Seng Index had its sharpest one-day decline in three-and-a-half years yesterday, leading a wider slump in Asian markets as investors fretted over a Greek vote to reject an aid-for-reform package from its creditors that raised the risk of a euro currency break-up.

The “No” vote in the Greek referendum saw investors flock to safe-haven trades, lifting US Treasuries and the US dollar, hurting the euro and commodities, and whipsawing Hong Kong equity investors whose nerves were already frayed by a weekend of emergency measures from Beijing to end a brutal mainland market rout.

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