Tokyo stocks dive on Cyprus bailout
Tokyo stocks fell 2.71 percent at the close Monday after the yen soared on news that Cyprus plans to tax bank depositors as part of a controversial bailout deal.

The EU and IMF want all bank customers in Cyprus to pay a levy in return for a bailout worth 10 billion euros.

It has caused widespread panic, with fears mounting that the situation could trigger an escalation of the eurozone debt crisis and a selloff in the euro.

The benchmark Nikkei 225 index was down 340.32 points at 12,220.63, while the Topix index of all first-section issues shed 23.31 points.

As a condition for Cyprus's much-needed bailout, the EU and IMF on Saturday imposed a levy on all deposits in the island's banks.

Deposits of more than 100,000 euros will be hit with a 9.9 percent charge and 6.75 percent for anything below that threshold.

The plan is yet to be finalised but the news of the deal caused a rush to the cash machines in Cyprus as people tried to withdraw money.

Hong Kong's Hang Seng and Australia's ASX 200 meanwhile dipped two percent.

Image: © Getty

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