Asian markets panic over the victory of Brexit

"Leave" campaign wins with 52% of the votes. Stock markets plummet. The pound loses 10% of its value. Jump in price of gold and oil drops below $ 50 again. The UK might lose a lot of investment from Hong Kong, Malaysia, Singapore. The British move goes against projects of a Euro-Asian market and communications network.


Hong Kong (AsiaNews) – Panic has swept through Asian stock markets, which have registered heavy losses in the immediate aftermath of the result of the referendum in Britain, with the victory of the campaign for the country's exit from the European Union.

In an upset to poll predictions, the "Leave” campaign took 52% of the votes, while the "Remain" only they have gained 48%. Participation in the referendum was high: 72%.

In Tokyo the Nikkei index fell by 7.7%; in South Korea, the Kospi dropped to minus 3.9%; Australia 3.4%; Mumbai Sensex at least 3.4%.

In China, the Shanghai Composite was down 1.2%, while the Hang Seng in Hong Kong registered a drop of 4.7%.

A worrying factor is the fall in the value of the pound, now at the lowest level since 1985. The pound has lost 10% of its value, now exchanging at $ 1.33.

Future consequences

According to several analysts, the Leave will vote reduce the value of the UK as a place to invest, given the future difficulties in its relations and communication with the European Union. Among the most affected countries are Hong Kong, Singapore and Malaysia who in recent years had invested in infrastructure and transport in the UK linked to the EU.

In recent months, many Asian leaders, including Chinese Xi Jinping, had advised Britain to remain in the EU, as well as many representatives of international organizations.

The United Kingdom’s detaching itself from the EU comes just as Asia and Russia look to boost Euro-Asian contacts. China’s Xi Jinping is engaged in his campaign "A belt, A way to create a new Silk Route by sea and by land between Asia and Europe.

China has spent $ 40 billion to fund this "Silk Road", which is also one of the new Asian Infrastructure Investment Bank’s biggest projects, which is providing a fund of 50 billion. The program includes infrastructure projects, such as railways, ports, power grids in Central and South Asia, as well as in Europe.

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