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Asian stocks, sterling rise as anxiety on Brexit abates

Nikkei index rose 0.3%, while MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%

A man looks at an electronic board showing Japan's Nikkei average and related indices at the Tokyo Stock Exchange (TSE) in Tokyo
A man looks at an electronic board showing Japan's Nikkei average and related indices at the Tokyo Stock Exchange (TSE) in Tokyo
Reuters Tokyo
Last Updated : Jun 23 2016 | 7:41 AM IST
Asian shares edged up and sterling stood close to its peak for the year on Thursday, as investors were cautiously optimistic that British voters would opt to remain in the European Union at a referendum later in the session.

Two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the "Remain" camp gaining momentum in the closely divided campaign.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2% in early trading, shrugging off modest overnight losses on Wall Street. Japan's Nikkei share average rose 0.3%.

"Markets seem to have almost entirely priced in a 'Remain' vote win, meaning that the market moves and volatility around the vote may be far less than many had been expected," wrote Angus Nicholson, market analyst at IG in Melbourne.

"Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours," he said.

Sterling rose to $1.4847, its highest against the dollar in 2016, and was last up 0.6% at $1.4798.

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The perceived safe-haven yen also slipped on receding fears of the market turmoil that would likely follow if Britain were to pull out of the EU.

The dollar added 0.2% to 104.69 yen , while the euro gained 0.5% to 118.54 yen .

The euro rose 0.2% to $1.1322 , while the dollar index, which tracks the greenback against a basket of six rival currencies, slipped 0.1% to 93.582.

On the US data front, home resales rose to a more than nine-year high last month against a backdrop of historically low mortgage rates, adding to recent upbeat second quarter data.

Crude oil prices rose after settling down more than 1% on Wednesday after the US government reported a smaller-than-expected inventory drawdown. 

Brent added 0.7% to $50.23 a barrel after shedding 1.5% on Wednesday, while US crude was up 0.8% at $49.53 after giving up 1.4% in the previous session.

Spot gold plumbed a two-week low of $1,260.36 an ounce and was last down 0.4 pct at $1,261.24.

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First Published: Jun 23 2016 | 7:38 AM IST

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