MSCI's broadest index of Asia-Pacific shares outside Japan wallowed at its lowest level since February 2014, extending its early losses after Chinese shares opened sharply lower. It was last down 2.7 percent.
FOMC meeting minutes and the ongoing Greece negotiations will continue to play on the rupee. Expect a trading range of 63.40-63.55/dollar today, says NS Venkatesh of IDBI Bank.
Euro zone members gave Athens until the end of this week to propose reform measures in order to secure the funding it needs to stay in the euro zone.
Greece faces a last chance to stay in the euro zone on Tuesday when Prime Minister Alexis Tsipras puts proposals to an emergency euro zone summit after Greek voters resoundingly rejected the austerity terms of a defunct bailout.
Spot gold was little changed at USD 1,168.91 an ounce by 0053 GMT. The metal had risen as much as 0.6 percent on Monday in an initial rally following the results of a Greek referendum but gave up some gains to close up 0.2 percent.
The European Central Bank, which has been keeping Greek lenders afloat, meanwhile announced it would maintain its liquidity lifeline to Greek banks, but made it harder for them to access the funds by tightening collateral terms.
In an interview with CNBC-TV18, Diego Iscaro, Senior Economist at IHS Global Insight said the next deadline for Greece is July end when the bond matures.
But despite fears of a "Grexit," Greek Prime Minister Alexis Tsipras said the result was not a mandate to clash with Europe.
Greek Prime Minister Alexis Tsipras on Saturday urged voters to ignore European scaremongering and vote 'No' in this weekend's referendum as polls showed support swinging behind the 'Yes' campaign.
Supporters of Greece's bailout terms have taken a wafer-thin lead over the "No" vote backed by the leftist government, 48 hours before a referendum that may determine the country's future in the euro zone, a poll showed.
Greece‘s radical left government said on Thursday it may resign if it fails to win a referendum that could decide the country‘s financial future.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS stood flat. Tokyo's Nikkei .N225 climbed 1.3 percent thanks to a weaker yen, while South Korea's Kospi was flat.
Athens was due to put new proposals for a two-year loan agreement and a debt rescheduling to Eurogroup finance ministers after hinting that leftist Prime Minister Alexis Tsipras might be willing to scrap a referendum on bailout terms.
The US Treasury Secretary, Jack Lew, has been talking to his counterparts in Europe and encouraging them to find a path towards a resolution.
Speaking to CNBC-TV18, Manish Singh of Crossbridge Capital says if the vote for referendum is a yes then Greek Prime Minister, Tsipras‘s, political career would come to an end.
The choice before Greece is stark - it will suffer whether it stays in the eurozone or leaves. If it stays in, it will have to enforce further cuts in expenditures and social security entitlements and raise taxes. If it exits and repudiates part or most of its external debt, it will get no fresh loans from any bank.
The European Central Bank rejected Greece's request for 6 billion euros of additional emergency funding on Sunday but is expected to keep the funding line used by Greek banks open until the July 5 referendum, people with knowledge of the matter said.
Speaking to CNBC-TV18 about the future outlook on European market, Bruno Verstraete, Lakefield Partners says will remain volatile and weak depending upon the political developments that take place amongst European Central Bank (ECB) and the Internaionla Monetary Fund (IMF) and the European nations.
Greece and the euro zone face a week of political and financial uncertainty after the Greek Prime Minister's shock announcement of a referendum on the country's creditors' proposals to resolve its debt.
Greeks woke up to shuttered banks, closed cash machines and a climate of rumours and conspiracy theories on Monday as a breakdown in talks between Athens and its creditors plunged the country deep into crisis.
After a bloodbath, the market managed to cut losses in the last couple of hours of trade Monday led by short covering in FMCG and private banking & financials stocks. Investors remained cautious ahead of deadline (June 30) for repayment of euro 1.6 billion debt by Greece to its creditors.
That figure includes loans made under two bailouts from European governments and the IMF since 2010 - worth a nominal 220 billion euros so far, of which some has been repaid - as well as Greek government bonds held by the European Central Bank and national central banks in the euro zone.
With the prospect of Greece being forced out of the euro in plain sight, the common currency fell as much as 1.9 percent to USD1.0955, its lowest in almost a month, and last stood down 1.4 percent at USD1.1007.
The emergency measures were agreed at a cabinet meeting after a gathering of Greece's systemic stability council, called after Eurogroup eurozone finance ministers refused to extend its bailout beyond Tuesday, sparking default fears over an IMF loan repayment due the same day.
Lagarde expressed disappointment that talks broke down on yesterday between Athens and its creditors, but said she believed the eurozone was in a "strong position" to respond to the crisis. "The coming days will clearly be important," Lagarde said in a statement.