Asian markets, euro hit by Greek fears

HONG KONG: Asian markets and the euro fell Wednesday on fears Greece could leave the eurozone after the country's second biggest party said it would rip up a bailout deal following weekend elections.

The anti-austerity leftists said Sunday's polls had shown people had rejected the strict cuts imposed as part of plans to clear up Athens' mountain of debts.

Their warning came as European leaders began drawing up plans to introduce more growth measures after furious voters kicked out pro-austerity leaders elsewhere in the continent, including France.

Tokyo fell 1.19 percent by the break, Hong Kong shed 0.73 percent, Shanghai slipped 0.87 percent and Seoul dropped 0.64 percent, while Sydney was 0.81 percent lower after the government unveiled a deficit-cutting budget Tuesday.

The leader of Greece's left-wing Syriza party said Tuesday his cabinet would reject all austerity measures imposed under an EU-IMF deal if he could form a new government.

"The public verdict has clearly nullified the loan agreement and (pledges) sent to Europe and the (International Monetary Fund)," Alexis Tsipras said in a televised address, in which he called the bailout terms "barbaric".

His comments fuelled expectations that Greece would be denied any fresh cash to service its debts, which would lead it to default and eventually tumble out of the eurozone. (AFP)