Stocks slide, bonds surge as Brexit fears resurface

Asian share markets turned tail on Wednesday (July 7) as fears over instability in the European Union returned with a vengeance, sending the pound to three-decade lows and hammering risky assets of all stripes.

Japan’s benchmark Nikkei average fell 2.00 percent to 15,355.62, while the broader Topix shed 1.96 percent to 1,231.99.

Hong Kong shares tumbled 2 percent in early trade.

South Korean shares slumped as sterling fell sharply. The Korea Composite Stock Price Index (KOSPI) was down 1.6 percent at 1,957.76 points.

In wild trading reminiscent of the fateful Friday when Britain voted to abandon the EU, sterling shed a full U.S. cent in a matter of minutes to crater at $1.2798.

Concerns that central banks might not be able to soften this latest blow to global growth are high, and spooked investors rushed into safe-haven sovereign debt, taking markets deeper into unknown territory.

(c) Copyright Thomson Reuters 2016

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