Date
24 July 2017
The Nikkei Stock Average may see further declines this week. Photo: Reuters
The Nikkei Stock Average may see further declines this week. Photo: Reuters

Asian markets brace for more Brexit turbulence

Asian markets are likely to face more turbulence this week after the United Kingdom voted to leave the European Union.

The Wall Street Journal, quoting analysts, said Britain’s decision to leave the union is likely to have limited direct economic impact on Asia because only a small proportion of the region’s exports go to the UK.

Still, Asian markets are expected to be affected by the general risk aversion gripping investors around the world, the newspaper said.

Stocks of British companies listed in the region such as HSBC Holdings Plc (00005.HK) may incur more losses, the report said.

On Friday the yen soared to its highest level since November 2013 as investors regard the Japanese currency as a safe haven.

The Nikkei Stock Average, meanwhile, became the biggest loser in Asia and may see further declines this week, the Journal said.

While stocks are getting oversold, investors don’t appear ready to start bargain hunting until after a few more weeks, the newspaper quoted Sean Taylor, chief investment officer for Asia Pacific at Deutsche Asset Management in Hong Kong, as saying.

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RA/CG

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