Asia report: Most markets down on renewed Brexit concerns

Japan’s Nikkei 225 lost 1.85% to 15,378.99, having lost as much as 3.2% during the session, with the yen gaining strength as a safe haven asset.

The yen was last 1.03% stronger against the greenback at JPY 100.69 per $1.

Major exporters declined on the currency’s strength, with Honda losing 4.55%, Nissan off 2.01% and Toyota down 1.73%.

“There's a high level of complacency in dollar/yen trade as the markets have no defined direction other than chasing risk sentiment," said OANDA senior trader Stephen Innes.

“I expect further probes lower as the latest Brexit sell-off is simply the tip of the iceberg.”

The yield on the 10-year Japanese government bond ended the session at -0.266%, having fallen as low as -0.281% during the session.

For the first time the 20-year Japanese government bond turned negative, falling to -0.005%.

Markets on the mainland once again ran against the trend, with the Shanghai Composite Index adding 0.35% to 3,017.09, though it did trade choppily above and below the line for much of the session.

The Xinhua News Agency reported that Chinese Premier Li Keqiang claimed a first quarter growth rate of 6.7% would not be easy for the flagging economy in a speech on Monday.

In South Korea, the Kospi lost 1.85% to 1,953.12, while Hong Kong’s Hang Seng Index was down 1.23% at 20,495.29.

The sell-off began before Asian markets opened, after three UK real estate funds suspended selling and the Bank of England relaxed lending regulations to encourage banks to release more money.

Governor of the central bank Mark Carney told City banks they need to be lending more money, and freed up £150bn by cutting the amount of capital they are required to hold in reserve.

“The heady post-Brexit rally looks to be at an end, with all major U.S. and European markets down overnight except the FTSE 100, which moved higher only as a response to the further decline in the pound,” said IG market analyst Angus Nicholson.

Oil prices reversed their earlier losses and advanced during Asian trading, though they began to fall again as Europe took the baton.

Brent crude was last down 0.59% at $47.68 per barrel, and West Texas Intermediate lost 0.5% at $46.37.

In Australia, the S&P/ASX 200 lost 0.58% to 5,197.50, with the weighty financials subindex dragging the benchmark, along with the energy and materials sectors.

New Zealand’s S&P/NZX 50 also bucked the regional trend for the second day in a row, eking out gains of 0.1% to 6,977.23, after spending much of the session lower.

The gains were led by online marketplace Trade Me, which rose 1.9% after analysts at Deutsche Bank raised the company to ‘hold’ from ‘sell’.

Both of the down under dollars were trading weaker against their American cousin, with the Aussie last off 0.18% at AUD 1.3423 per $1 and the Kiwi losing 0.75% to NZD 1.4084.