Business

Asia investors remain cautious ahead of UK referendum

worried asian investor Image copyright Reuters

Investors across Asia remained cautious on Tuesday ahead of several key events in the coming two weeks, including the UK's EU referendum.

After falling by 3.5% on Monday, Japan's benchmark Nikkei 225 closed down a further 1% at 15,859.

In addition to worries over the UK's referendum, investors are also eyeing meetings of the US Federal Reserve and Bank of Japan this week.

However, most analysts are not expecting either to alter rates.

In China, the Shanghai Composite closed up 9.12 points at 2,842.19, while in Hong Kong the Hang Seng index ended the day 125.46 points lower at 20,387.53.

Korea investigation

In South Korea, the benchmark Kospi index fell 0.36% to 1,972.03.

Image copyright Getty Images
Image caption The Lotte Group is Korea's fifth-largest conglomerate and is involved a range of sectors including hotels, retail, food and chemicals

Shares in some firms that fall under South Korean conglomerate Lotte Group closed lower after further raids were conducted on some of the group's businesses.

The raids are part of a bribery investigation, according to some reports.

Shares of Lotte Shopping fell 1.5%, while shares in Lotte Chemical Corporation closed down more than 1%.

Hotel Lotte pulled its largely anticipated initial public offering on Monday. The share offering had been billed as the world's biggest this year, worth some $4.5bn.

In Australia, Sydney's S&P/ASX 200 index fell more than 2% to 5,203.26. The index was dragged lower by several sectors including energy and banking.

Australia's market had been closed on Monday for the Queen's birthday.

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