Southeast Asian Stocks dive as Britain votes to leave EU

By: | Published: June 24, 2016 11:46 AM

Asian stocks were down with MSCI's broadest index of Asia-Pacific shares outside Japan down 5.1 percent.

asian stocksBritons vote to leave the European Union resulted in a plunge in South Asian stocks. (Reuters)

Southeast Asian stock markets plunged on Friday as investors went on a selling spree after Britons voted to leave the European Union. World financial markets dived as nearly complete results showed a 51.7/48.3 percent split for leaving the 28-member bloc.

Sterling suffered its biggest one-day fall of more than 9 percent against the dollar, hitting its lowest level in three decades on market fears the decision will hit investment in the world’s fifth largest economy.

Also Read: Japan signals readiness to intervene as Brexit boosts yen

Commodity markets slumped as well, with oil prices falling more than 4 percent in Asian trading. “We think UK’s EU exit will generate large volatility in the market given most market participants were betting on a Bremain scenario,” said Taye Shim, a strategist with Daewoo Securities in Indonesia.

“Today’s movement is a clear evidence that markets hate unpredictable uncertainties.” Singapore shares were heading for their biggest percentage loss in more than four months, while Vietnam fell over 3 percent.

In the city state, most sectors dropped over 1 percent with oil and gas stocks leading the losses. Vietnam shares fell, led by energy stocks including Petrovietnam Gas Joint Stock Corp, while the Philippine market fell nearly 2 percent, after hitting a 13-month high in early trading.

Malaysian stocks hit a one-week low, weighed down by consumer cyclicals, while Thai shares slid nearly 3 percent as the energy sector took a hit.

Indonesia fell over 2 percent with consumer cyclicals leading the losses. “Although we see limited direct impact of UK’s EU exit on Indonesia, we believe the spillover will place negative repercussions on risky assets including Indonesia,” said Taye Shim of Daewoo Securities.

Asian stocks were down with MSCI’s broadest index of Asia-Pacific shares outside Japan down 5.1 percent.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition