Brexit: Asia’s Biggest Economies Concerned over the World’s Economic Stability

Britain’s vote to leave the EU has created concern in the minds of some of the Asia’s biggest economies over the world’s economic stability.

Finance Minister of China Lou Jiwei said the consequences were unclear, but that they would be felt for years to come.

South Korea’s President Park Geun-hye and Japanese Prime Minister Shinzo Abe said their countries were prepared to react to market volatility.

There is a concern that the uncertainty created by Britain’s decision will continue to affect financial markets around the world.

Mr Lou said, Brexit would “cast a shadow over the global economy” and that the “repercussions and fallout” would emerge over the next five to 10 years.

However, he added that reaction from stock markets, which fell sharply, may have been overdone.

“The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view,” he added.

Following the result of the vote, the pound crashed 10% against the dollar to a 31-year low before trimming losses to end the day around 7.5% down.

Sterling also fell 11.4% against the yen. Japan hinted that it may intervene to stem the yen’s strength.

On Friday, the Swiss National Bank acted to weaken the Swiss franc which rose 2.1% against the dollar as investors rushed to buy the currency.