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Pound slump deepens amid Brexit turmoil as gold gains with yen

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Witnesses say a base jumper has safely parachuted from the European Union’s tallest building, the Shard in London, and evaded police by jumping on the subway. (Lefteris Pitarakis, AP)
Witnesses say a base jumper has safely parachuted from the European Union’s tallest building, the Shard in London, and evaded police by jumping on the subway. (Lefteris Pitarakis, AP)

Hong Kong - The aftershocks of the UK's vote to leave the European Union continued to reverberate across financial markets, with the pound extending its selloff near a 31-year low and Asian stocks outside Japan slipping with oil.

Sterling added to Friday’s record drop and UK stock index futures tumbled more than 3%, weighed down by the prospect of months of uncertainty amid turmoil within Britain’s two major political parties and Scotland agitating anew for independence. The Norwegian krone led losses among the currencies of oil-exporting nations as crude slid toward $47 a barrel. Demand for haven assets boosted gold and US Treasuries, while Japanese equities rebounded from their worst day in five years on prospects the government will take steps to stabilise financial markets.

The victory for Brexit tore through world markets on Friday, pummeling the pound and high-yielding assets as more than $2.5trn was wiped from global equity values. Prime Minister David Cameron resigned without spelling out when the UK intends to leave the EU and eight members of Labour Party leader Jeremy Corbyn’s team quit amid calls for his ouster. US Secretary of State John Kerry travels to Brussels and then London on Monday as Nicola Sturgeon, the first minister of Scotland - whose people voted to stay in the EU - teases the possibility of a second referendum on independence from the UK.

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ZAR/USD
17.04
(-0.38)
ZAR/GBP
21.81
(-0.11)
ZAR/EUR
19.90
(-0.12)
ZAR/AUD
12.03
(-0.12)
ZAR/JPY
0.16
(-1.12)
Gold
1860.65
(+0.03)
Silver
22.87
(+0.11)
Platinum
844.51
(+0.50)
Brent Crude
42.23
(-0.12)
Palladium
2207.00
(+0.59)
All Share
53587.11
(-1.22)
Top 40
49547.74
(-1.16)
Financial 15
9401.28
(-1.95)
Industrial 25
72949.70
(-1.72)
Resource 10
53453.42
(-0.10)
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