Tuesday, 28 June 2016 - 16:26
Japan Stocks Continue To Gain Despite The Brexit Turmoil


Japanese shares on Tuesday continued to roll back losses from last Friday's sharp post-Brexit tumble.

After initial losses in morning trade, the Nikkei 225 index continued to build on Monday's gains and was up by 0.5% to 15,387.99 points.

With the yen remaining strong, Japanese exporters though continued to suffer.

As investors remain on edge over the possible fallout from Brexit, they are flocking to the yen as a safe haven, driving the currency higher.

Any rise in the yen will make Japanese goods more expensive abroad, hurting the prospect of the country's crucial export sector.

On Monday, the government in Tokyo had tried to reassure by promising it would take action if needed to reign in the yen.

Car makers Toyota, Nissan and Honda - all of which have production sites in the UK - were all down on Tuesday.

Other exporters like Hitachi, Panasonic or Yamaha have also all seen losses in Tuesday trade.

Global losses

Shares in Europe, the UK and the US have all continued to see heavy losses on Monday with the uncertainty over the UK's economic future intensifying.

The UK has now lost its top AAA rating from all the three major ratings agencies.

In China, Hong Kong's Hang Seng index was down by 0.8% to 20,050.93 while the mainland benchmark Shanghai Composite remained flat at 2,894.50.

Australia's ASX/200 in Sydney was down by 0.6% to 5,105.30.

South Korea's benchmark Kospi index was lower in morning trade but traded 0.5% higher to 1,937.53 at noon.

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