Asia report: Markets plunge on Brexit shock

Markets in Asia crashed on Friday and gold prices rocketed, with the results of the UK referendum on the European Union being gradually released during the session.

The UK voted to leave the EU in a shock result that neither polls or markets had expected.

“The biggest concern for markets is what the implication of Brexit will be for the European Union," said IG market analyst Angus Nicholson.

“There is a strong incentive for the EU to make the U.K.'s exit as punitive as possible to severely diminish the risk of other members making the same move.”

In Japan, the Nikkei 225 plunged 7.92% to 14,952.02 as the yen gained strength - it was last 2.94% stronger at JPY 103.04 per USD.

Nikkei futures were briefly halted from trading for the first time since May 2013.

Yen was initially weaker in early trade, but gained strength as sterling dropped and the Leave vote success became clearer in the UK.

On the mainland, the Shanghai Composite Index finished down 1.33% to 2,853.62 and the Shenzhen Composite lost 0.76% to 1,900.59.

In Korea, the Kospi lost 3.09% to finish at 1,925.24, while Hong Kong’s Hang Seng Index lost 2.92% to 20,259.13.

Investors were fleeing to safe haven assets, with spot gold climbing 5.08% in Asian trading to $1,318.96 per ounce during afternoon trading.

Oil prices were hard hit, with Brent crude last down 4.71% at $48.62 per barrel and West Texas Intermediate off 4.6% at $47.90.

Australia’s S&P/ASX 200 tumbled 3.17% to 5,113.18, with UK-exposed stocks seriously affected.

BT Investment shares lost 14.9%, Clydesdale Bank lost 17.51% and Henderson Group fell 12.03% in Sydney trading.

Most of the big Australasian banks also closed down, with Australia and New Zealand Banking Group off by 4.09%, Commonwealth Bank of Australia down 3.27%, National Australia Bank losing 3.79% and Westpac down 4.42%.

In New Zealand, the S&P/NZX 50 lost 2.3% to close at 6,667.78.

The down under dollars were both markedly weaker against the greenback, with the Kiwi back by 2.49% at NZD 1.4141 and the Aussie 2.82% behind at AUD 1.3508.