Asian stocks volatile as investors await UK vote results

SEOUL, South Korea – Asian stock markets were volatile on Friday with Tokyo stocks and U.S. futures plunging as early vote results on whether Britain should stay in the European Union showed a tight race.

Stocks and currencies took a wild ride amid mixed indications about the Britain’s vote results.

In early morning trading, Tokyo stocks tumbled as much as 2.9 percent while other Asian stock markets also traded lower in South Korea, Australia and Taiwan.

As of 0132 GMT, Tokyo’s Nikkei 225 traded 0.1 percent lower at 16,228.58. Seoul’s Kospi was nearly flat at 1,986.00. Australia’s S&P/ASX200 was down 0.1 percent to 5,241.8.

U.S. futures were also volatile. S&P futures plunged 1.6 percent while Dow futures slid 1.1 percent. Wall Street closed with rallies on Thursday before early results came in.

Polls suggested a “remain” victory. But initial results unexpected showed a tight race, causing the British pound to seesaw wildly.

The first results, from England’s working-class northeast, were a smaller-than-expected “remain” win in Newcastle and a bigger-than-expected “leave” vote in nearby Sunderland. The “leave” side also outperformed expectations in other areas of England.

As vote counts progressed, the odds for the “leave” side gained strength. The first four results from Wales have shown majorities for the “leave” camp, flagging further warning signs for the “remain” camp.

Analysts expected increased volatility in currency markets as the results of the Britain’s vote remained murky.

The dollar gained to 104.92 yen from 104.80 yen while the euro slipped to $1.1286 from $1.1318.