Hong Kong stocks fall for 3th day on Brexit fallout fears

Japan’s Prime Minister Shinzo Abe instructed officials to take steps to reassure markets, the Kyodo news agency reported, while South Korea’s government unveiled a 20 trillion won ($17 billion) stimulus package and backup budget for big infrastructure projects.

Anson Chan, Hong Kong’s most senior civil servant during the handover in 1997, said: “This is not supported by the vast majority of Hong Kong people who accept that independence is neither a desirable or realistic aspiration”.

As stock markets and the pound continued to decline, Cameron insisted the British economy was robust and could withstand the shockwaves created by the result. But early Tuesday, it recovered a bit of ground to trade around $1.33. The Shanghai Composite Index dipped only 0.04 per cent or 1.2 points to 2,894.5 while the CSI 300, which tracks the large caps listed in Shanghai and Shenzhen, slid 0.21 per cent or 6.46 points to 3,114.08. Benchmarks in Taiwan, Singapore, Thailand and Indonesia rose. It was dragged down by companies with high exposure to Europe, such as billionaire tycoon’s Li Ka-shing’s CK Hutchison Holdings, which has British retail, ports and telecom investments and fell 1.7 percent.

Britons voted last Thursday to leave the European Union over concerns including immigration and regulation, an unprecedented move that stunned financial markets and triggered waves of selling on Friday and Monday.

“We’re still in the early days”, said Andrew Sullivan, managing director of sales trading at Haitong International Securities in Hong Kong.

Days after the United Kingdom referendum result wiped nearly 8% off Japanese shares and sent the yen up sharply against the U.S. dollar, Japanese government officials have started drawing up plans to minimise Brexit’s impact on the world’s third-biggest economy.

The pound, meanwhile, hit a fresh low of below $1.32 on Monday, its weakest level in more than three decades.

The safe-haven Japanese yen steadied and oil prices clawed back some of their overnight losses, while gold held steady near its highest level in over two years. The dollar rose to 102.36 yen from 101.90 in late trading Monday. The euro strengthened to $1.1055 from $1.1020.

USA stocks fell sharply for a second consecutive session on Monday, as crude prices tumbled almost 3 percent and investors continued to grapple with the fallout of Britain’s vote to leave the European Union.

On the other hand, the WTI crude was quoted 1.05% down at US$ 48.85/bbl, while the Brent crude in London was quoted at US$ 48.24/bbl, down 0.35%.