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.