Nikkei rebounces post-Brexit
On Monday, Japanese shares rebounced, getting slammed by the UK’s decision the previous week to abandon the European Union, thus bringing the vast majority of Asian quieties up.
However, the PBOC’s move to weaken the Chinese currency by the most since August last year proved unsettling, thus keeping market participants anxious that the fallout from the recent Brexit vote appeared to be far from over.
The Nikkei Stock Average closed +2.4%, thus recouping some of Friday’s losses when the market slumped 8%. The benchmark index is still close its lowest outcomes since October 2014, after four slumping weeks.
Traders are raising safe-haven assets once again, purchasing everything from gold to the yen, not to mention Japanese government bonds.
Gold prices surged 0.7%, hitting $1,332 per troy ounce, while yields on some Japanese government bond tenors edged down to record minimums. Furthermore, the 10-year bonds are currently traded minus 0.209%.