Asian stocks dip as sterling’s brief plunge unsettles traders
On Friday, market worries sent Asian stocks down during early trade, as increasingly heated speculation over Britain’s exit from the EU saw the sterling plunging against the major American currency.
Japan’s Nikkei Stock Average sank 0.3%, Australian S&P/ASX 200 lost 0.3% too. Meanwhile, in Hong Kong the Hang Seng Index sagged 0.5% and the same result was demonstrated by Korean Kospi. Chinese markets weren’t available because of the Golden Week holiday.
The sterling sank as much as 6.3% against the greenback to $1.1819 during early Asian trade having recovered. Currently, the ip have narrowed to 1.5%.
In Hong Kong, shares with large exposure to Britain went down, reacting to the sterling’s precipitous descend. Additionally, banking giant HSBC lost 0.9%, while Standard Chartered Bank dipped 1.7%.
Cheung Kong Infrastructure, boasting many utility investments in Great Britain, sagged 1.3%.