Asian markets crash as Brexit eyed, yen strengthens as Kurdo 'carefully monitors'

Asian stock markets were in turmoil on Friday morning, a vision of the future for the European open, as the UK appeared to be on the verge of a Brexit from the EU, causing consternation for the Bank of Japan.

The Nikkei 225 index has so far crashed more than 8%, easily its worst one-day fall since the Fukushima earthquake and tsunami in 2011, though China's Shanghai composite is down a more sedate 1%.

But the violent 9% lurch south in the pound versus the dollar and 6.5% against the euro has coincided with similar surges in the yen as traders dash for the safety of the Japanese currency.

"These moves have sent the dollar through 100 against the yen to trade at two and a half year lows," said market analyst Craig Erlam of Oanda, "a move that will surely spark the interest of the Bank of Japan and other Japanese officials.

"If the UK votes to leave, you have to wonder how long they will take to intervene and weaken the currency which once again has strengthened considerably on speculation."

Bank of Japan governor Haruhiko Kuroda said the central bank was poised to act and ensure market stability when it felt it was necessary.

"The BOJ, in close co-operation with relevant domestic and foreign authorities, will continue to carefully monitor how the (British referendum) would affect global financial markets," Mr Kuroda said.

CMC's Michael Hewson said the big money bets in the lead-up to Thursday’s vote look to have been "rather premature" as the last few opinion polls appear to have underestimated the extent of voter dissatisfaction with the status quo.

"The highest voter turnout since 1992 suggests that while voters have engaged anew with the political process they have passed their verdict on their political overlords and while it hasn’t been unequivocal it has clearly shown that for all the economic warnings voters in the UK were not swayed by the hyperbole and seemed determined to send a message to the so called establishment.

"The message is being heard loud and clear by financial markets and how authorities respond in the coming hours is likely to determine what happens next.

"As early results came in the pound and equity market futures have plunged with the pound posting a six month high and low in the space of 4 hours and then going onto post its lowest level since 1985 below 1.3500 as we look to push down towards the $1.3000 level."