Asia

China Rolls Out Emergency Measures to Prevent Stock Market Crash. Officials rolled out an unprecedented series of steps at the weekend to prevent a full-blown stock market crash. The government is anxiously awaiting the market opening on Monday to see if the new measures will halt a 30% plunge in the last three weeks. In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank. China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend. (Reuters)

China Services Sector Slows to 51.8 in June. The HSBC/Markit Services Purchasing Managers' Index (PMI) showed China's services industry fell to 51.8 in June, down from 53.5 in May, hitting the slowest expansion since January. A reading above 50 indicates expansion, while below 50 reflects contraction. Markit economist, Annabel Fiddes, said in a statement released on Friday that the latest PMI data signalled a further loss of growth momentum in China’s economy at the end of the second quarter. (Reuters)

Japan June PMI Shows Services Sector Grows at Fastest Pace in 9 Months. Japanese services sector activity expanded at the fastest pace in nine months in June, suggesting domestic demand is strengthening in the world's third-largest economy. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.8 in June from 51.5 in May. The index remained above the 50 threshold that separates expansion from contraction for the third consecutive month. The index for new business rose to 52.6 from 52.2 to indicate the fastest growth in seven months. (Reuters)

Europe

Greeks Defy Europe with Overwhelming Referendum 'No'. Greeks voted overwhelmingly on Sunday to reject terms of a bailout in a show of defiance that could splinter Europe. With nearly half of the votes counted, official figures showed 61% of Greeks rejecting the bailout offer. An official interior ministry projection confirmed the figure as close to the expected final tally. The astonishingly strong victory by the 'No' camp overturned opinion polls that had predicted an outcome too close to call. It leaves Greece in uncharted waters: risking financial and political isolation within the eurozone and a banking collapse if creditors refuse further aid. But for millions of Greeks the outcome was an angry message to creditors that Greece can longer accept repeated rounds of austerity that, in five years, had left one in four without a job. (Reuters)

European Service Industry Enjoys June Bounce. Euro zone business activity expanded at its fastest pace in four years last month as the European Central Bank's stimulus package more than offset fears Greece could crash out of the currency union. The final composite PMI for June, which combines manufacturing and services activity and is seen as a good guide to growth, came in at 54.2, just above a preliminary reading of 54.1 and well ahead of May's 53.6. That was its highest reading since May 2011. The index has now been above the 50 mark that separates growth from contraction for two years. (Reuters)

Currencies

Euro Falls as Greece Votes 'No' to Bailout Package. The euro fell sharply on Monday in Asia-Pacific trading after Greeks looked to have overwhelmingly rejected austerity measures demanded in return for bailout money. The 'No' vote triggered a rush to safety with the yen being the main beneficiary, with the euro down 1.6% against the yen to 134.24 yen, while the U.S. dollar traded at 121.94 yen from 122.80 on Friday. The New Zealand and Australian dollars, often taken as a proxy for risk appetite, also trimmed early losses, but the kiwi was down 0.5%, just above a five-year low at $0.6645, while the Aussie was down 0.5% at $0.7473, just above a six-year low. (Reuters)

Commodities

Oil Drops on Rising U.S. Rig Count. Oil prices fell on Friday as a rising U.S. rig count stoked fears of global oversupply and after Chinese regulators opened an investigation into suspected stock market manipulation. U.S. oil drilling increased this week for the first time after 29 weeks of declines, a sign U.S. oil production may start to increase more strongly again. Brent crude for August was down 45 cents at $61.62 a barrel by 1020 GMT, extending a downward trend in place since early May, which has seen prices fall almost 10%. Front-month U.S. crude was at $56.56, down 37 cents, dropping below a trading range of $57 to $62 seen since early May. (Reuters)

Gold Above 3.5-Month Low on Dollar, Focus on Greek Vote. Gold prices firmed on Friday, rebounding from a 3.5-month low as the dollar softened after weaker than forecast U.S. employment data tempered expectations for a September rate rise by the Federal Reserve.. Spot gold gained 0.2% to $1,168.04 an ounce by 1000 GMT. For the week, gold was still heading for a 0.5% fall, adding to a 2% weekly loss previously, mostly as a result of gains in the dollar against the euro as the Greek debt crisis unfolded. Silver fell 0.3% to $15.64 an ounce, while platinum dropped 0.2% to $1,079.74 and palladium was down at $688.47. (Reuters)