Business

Japan stocks continue to stabilise despite Brexit turmoil

Tokyo shoppers Image copyright AFP

Japanese shares on Tuesday continued to roll back losses from last Friday's sharp post-Brexit tumble.

After falling initially in morning trade, the Nikkei 225 index continued to build on Monday's gains and closed 0.1% higher at 15,323.14.

But with the yen remaining strong, Japanese exporters continued to suffer.

As investors remain on edge over the possible fallout from Brexit, they are flocking to the yen as a haven, driving the currency higher.

A rise in the yen makes Japanese goods more expensive abroad, potentially damaging the prospects of the country's crucial export sector.

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Media captionJapanese business 'envious of the EU being a single market'

On Monday, the government in Tokyo had tried to reassure businesses by promising it would take action if needed to rein in the yen.

Carmakers Toyota, Nissan and Honda - all of which have production sites in the UK - all saw their shares fall on Tuesday.

Shares in other exporters, such as Hitachi, Panasonic and Yamaha, also dropped.

Over in Hong Kong the Hang Seng index closed down 0.27% at 20,172.46, while China's benchmark Shanghai Composite closed up 0.58% to 2,912.56.

Australia's ASX/200 in Sydney fell 0.7% to close at 5,103.30.

South Korea's benchmark Kospi index was lower in morning trade but ended the day 0.5% higher at 1,936.22.

Shares in Europe, the UK and the US saw heavy losses on Monday with the uncertainty over the UK's economic future intensifying.

The UK has now lost its top AAA rating from all the three major ratings agencies.

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