Turmoil unleashed by Britain’s vote to leave the European Union heightened anxiety in Asia on Sunday, with China, Japan and South Korea all fretting over the risk to world financial stability a few hours before markets reopen.
China’s finance minister said fallout from Thursday’s referendum “will cast a shadow over the global economy” while a senior official in Tokyo warned of the danger of “speculative, violent moves” in currencies.
In Britain, open political conflict spread from the ruling Conservatives to the opposition, and senior Labour lawmakers attempted a coup against their leader after traditional supporters rejected the party’s pro-EU stand in droves.
Splits widened across the nation. Over three million Britons signed a petition demanding a re-run of the referendum, with the number climbing by the hour, and an opinion poll showed a large majority of Scots now want to break with the United Kingdom.
Scotland’s leader promised she would do whatever it takes to keep her strongly pro-EU country in the bloc, including potentially vetoing legislation on a British exit from the world’s biggest single market.
But French President Francois Hollande declared there was no going back on “Brexit”.
“What was once unthinkable has become irreversible after the vote of a majority of the British people,” he said during the inauguration of a World War Two memorial in central France.
Hollande called for France and Germany to use their strong friendship for seizing the initiative, warning that “separated, we run the risk of divisions, dissensions and quarrels”.
KNEE-JERK REACTION
British Prime Minister David Cameron resigned on Friday after voters ignored his appeals to stay in the EU by 52 to 48 percent, delivering the biggest blow since the war to the European project of forging greater unity.
Cameron, however, left formally notifying the EU of Britain’s intention to leave to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo.
Sterling fell as much as 10 percent against the dollar on Friday to levels last seen in 1985, while more than $2 trillion was wiped off the value of world stocks. The weekend gave some respite for markets, but apprehension grew as Monday’s reopening approached.