• MTS Futures News_PM_20160627

    27 Jun 2016 | SET News


Asian stocks fell and the British pound tumbled more than 2 percent on Monday as markets struggled to shake off deep uncertainty sparked by Britain's decision to leave the European Union.

Sentiment remained weak and trading was volatile, even if the worst of the turmoil seen on Friday, when global stock markets suffered their biggest decline in nearly five years, had eased.

Among many questions the British exit, or Brexit, has triggered are just how much UK and European economies will slow, how they will negotiate their new relationship and how European leaders will try to boost the crumbling European Union.

The British pound fell 2.4 percent to $1.3388 GBP=D4, still some distance from the 31-year low of $1.3228 touched during Friday's wild trade.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.9 percent in volatile trade as companies with UK exposure in particular came under more pressure.

Japan's Nikkei share average recouped some of last week's steep declines on Monday, as government officials stepped up warnings that they may intervene in currency markets to stabilise the yen after Britain voted to leave the European Union.

The Nikkei rose 2.4 percent to 15,309.21, after diving 7.9 percent on Friday.

China stocks rebounded more than 1 percent on Monday, led by small-caps, as investors shrugged off Britain's decision to leave the European Union.

The Chinese market had a small fall on Friday after Brexit, but on Monday, main indexes climbed steadily after a weak opening.

The blue-chip CSI300 index rose 1.4 percent, to 3,120.54, while the Shanghai Composite Index gained 1.5 percent, to 2,895.70 points.

Hong Kong shares were little changed on Monday after Friday's plunge, as the panic sparked by Britain's decision to leave the European Union eased.

The Hang Seng index slipped 0.2 percent, to 20,227.30 while the China Enterprises Index, which tracks Hong Kong-listed Chinese companies, gained 0.4 percent, to 8,567.21 points. Major mainland market indexes rose more than 1 percent.


Reference: Reuters

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