Summary The euro sank after negotiations between Greece and its creditors collapsed in less than an hour
TOKYO (AFP) - Tokyo stocks slipped Monday morning following losses on Wall Street and the collapse of Greece s debt reform talks that fuelled fears it will default and exit the eurozone.
The Nikkei 225 index at the Tokyo Stock Exchange fell 0.23 percent, or 46.06 points, to 20,361.02 by the break, while the Topix index of all first-section shares was down 0.07 percent, or 1.13 points, at 1,650.35.
"The stock market has priced in hopes that Greece will come to an agreement, so if that doesn t happen, it s going to be a really harsh situation for equities," Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News.
"If they don t reach an agreement, they might start moving ahead with Greece exiting the euro."
The euro sank after negotiations between Greece and its creditors collapsed in less than an hour on Sunday, with both sides blaming the other s refusal to back down on certain issues.
It fanned fears that the cash-starved Greek government was heading irreversibly into the financial abyss with a huge IMF debt payment due at the end of the month.
The feeling is now stronger than ever that Greece could be heading for an exit from the eurozone after years of crisis.
All sides had agreed that the talks were the last chance for Athens to unlock vital bailout cash in return for tough reforms that Greece s Prime Minister Alexis Tsipras still doggedly refuses.
The euro dropped to $1.1217 and 138.45 yen Monday, from $1.1260 and 138.92 yen in New York late Friday.
The dollar firmed to 123.41 yen from 123.37 in US trade.
In share trading, Toyota edged up 0.13 percent to 8,405 yen, while market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, fell 0.19 percent to 52,670 yen.
Honda slipped 0.27 percent to 4,091 yen after its US unit on Friday reported a new death linked to an exploding air bag crisis -- bringing the global total to seven fatalities and scores more injuries -- which sparked the recall of millions of vehicles.
