Pending Brexit Vote Brightened Prospects of Asia Markets on Tuesday

Published Date : Jan 15, 2019

Asia market opened on a positive note on Tuesday (Jan 15) as U.K. lawmakers prepare for a final vote on Brexit. The jump in Asian market is significant amidst darkening skies and slowdown in China. 

Kospi, South Korean stock market, rose by 1.31 percent while Kosdaq gained 1.11 percent. Similarly, Japanese stock market Nikkei 225 went up by 0.9 percent while Seng index in Hong Kong rose by 1.45 percent.   

Earlier last week, the Chinese central bank released official figures indicating slowdown in manufacturing and export activity. The global markets consequently experienced a dampening sentiment. The Brexit vote has provided a small relief to the ongoing gloom in global market.

Brexit vote could still trigger markets unexpectedly 

Today, the U.K. lawmakers would be voting on Theresa May’s Brexit deal to leave the European Union. The impending vote could trigger a massive setback for markets, especially if the current bill is defeated by a really large margin. However, there is good news in the store for many Asian economies for now. 

Market Stabilization is the Need of the Hour 

ASX 200, Australia’s stock market, rose by 0.5 percent on the back of addition from the financial subindex. The Australian dollar also rose in value to $0.7218 climbing from the previous valuation of $0.7188.  

The Brexit vote has also set aside the recent declines on Wall Street for now. Uncertainty similar to the one in the Brexit crisis is also looming large over Wall Street gains. According to an analyst at ANZ Research, “A synchronised global manufacturing down-swing is underway and possibly intensifying”. 

He further added that resolving trade uncertainty is fundamental to a stable market outlook. A resolution between Washington and Beijing could give markets more to cheer about in the future.