Asian stocks volatile as investors await United Kingdom vote results

Japanese shares ended the trading on Friday sharply lower with the benchmark Nikkei stock index losing almost eight per cent after the “leave” camp triumphed in a referendum on Britain’s membership of the European Union.

The Nikkei 225 plunged 7.92 percent, or 1,286.33 points, to 14,952.02 in its biggest one-day fall since Japan’s 2011 quake-tsunami disaster.

Telstra said it has completed the sale of a 47.4 percent stake in Chinese vehicle website Autohome to Ping An Insurance for A$2.1 billion, providing the company with funds for a A$1.5 billion capital management program. Australia’s S&P/ASX 200 Index gained 0.1 percent, while New Zealand’s S&P/NZX 50 Index rose 0.3 percent. In Hong Kong, the Hang Seng index was down 2.25 percent.

Meanwhile, the bond markets were on fire as edgy investors panic-bought safe-haven assets.

Australian Treasurer Scott Morrison said despite financial market volatility over the Brexit vote, the way in which Britons vote “doesn’t change anything that the Australian government has to do” in terms of the nation’s economic plans.

Analysts also pointed to the low volume in markets, saying most investors preferred to stay on the sidelines ahead of Thursday’s referendum. The dollar fell to as low as 99.00 yen JPY= , its lowest since November 2013.

Uniqlo operator Fast Retailing, a market heavyweight, tumbled 10.38 percent to 26,295 yen.

“For the most part, trading has been periodic amid dwindling liquidity”, said Stephen Innes, a senior foreign exchange trader at OANDA.

European markets expected to fall sharply when opening later tonight. Benchmark U.S. crude lost 3.8 percent, or $1.92, to $48.18 per barrel in NY. The annual total of 3.29 million equaled 70 percent of the entire population of 4.7 million.

In recent weeks, Japanese officials have repeatedly warned that a market intervention to weaken the yen was a strong possibility as the surging unit threatened Japan Inc’s profits.

The euro also dropped against the greenback, trading at United States dollars 1.1153 compared to an earlier high of USD 1.1432. Crude oil prices and USA futures also took a big hit.

The on-shore Chinese yuan traded at 6.5959 against the dollar.

The Australian market is notably lower, paring early gains.

Toyota at one point lost more than 10 per cent before paring some losses, with the auto giant down 7.86 per cent at 5,286 yen in mid-afternoon trade. “It’s an emergency situation but we need to remain vigilant until after the final results”.

Spot gold climbed 1.78 percent to Dollars 1,277.60 an ounce as of 10:20 a.m. HK/SIN. The first section is for large-sized companies, while the second section is for medium-sized companies.

“Tourists would still come from Europe and the UK to Australia and Australians would continue to travel to Europe and the UK”, Mr James said. The shipbuilder’s shares are higher by 0.4 percent. Panasonic is rising nearly 2 percent, Canon is up 0.5 percent and Sony is adding 0.1 percent.

Benchmark U.S. crude plummeted 6 percent, or $3.00, to $47.11 per barrel in NY. Energy stocks in the region were under pressure, with Santos shares down 2.22 percent, Woodside Petroleum down 2.07 percent and Inpex off by 4.75 percent.

The euro added 0.2 percent to $1.1266 EUR=, moving back to take aim at a two-week peak of $1.1383 set on Monday.