SINGAPORE: Asian shares, the euro, commodities and the Australian dollar all fell on Thursday as fears that Europe's debt crisis could unleash financial chaos prompted investors to shed riskier assets in favour of the relative safety of the dollar.
US stock futures also fell, retreating from a Wall Street rebound on Wednesday, as leaders of the world's biggest economies began arriving in France for a G20 summit set to be dominated by the threat of a Greek exit from the euro zone.
Asian stocks dropped 1.5 per cent, while oil, copper and the commodity-linked Aussie fell around 1 per cent and credit markets weakened.
The leaders of France and Germany, angered at Greece's shock move to call a referendum on its latest bailout plan negotiated last week, told Prime Minister George Papandreou on Wednesday that Athens would not receive another cent in EU aid until it decides whether it wants to stay in the euro zone.
"It's clearly a worse situation as it is putting other euro zone members in a corner," said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong.
If Greek voters reject the 130 billion euro bailout package, which is conditional on harsh austerity measures, it could lead to a disorderly default, with the fallout affecting European banks and rippling across the global financial system.
MSCI's broadest index of Asia Pacific shares outside Japan fell 1.5 per cent, while S&P 500 futures traded in Asia lost 1.3 per cent. Wall Street shares had gained more than 1.5 per cent on Wednesday.
Tokyo's financial markets were closed for a public holiday.
