Asian markets: Shanghai Composite gains as UK pound falls further

The Shanghai Composite Index was up 0.86% at 2,878.76 as of 4.41am GMT, while other Asian stock market indices were trading mixed on Monday (27 June). This followed a further decline in the value of the pound amid continuing Brexit concerns. It was trading at 1.34 against the US dollar as of 4.51am GMT and marked a 2.07% decline from Friday's close when the pound hit a 30-year low.

The Asian markets though generally weak were performing better than on Friday (24 June), when they suffered their sharpest slump in nearly five years after the UK decided to leave the European Union (EU). Hiroko Iwaki, senior strategist at Mizuho Securities, said: "Things are so uncertain that investors still do not have a clear idea how much risk assets they need to sell. But it is safe to assume investors are not yet done with all the selling they need to. I wouldn't be surprised to see another 10% fall in share prices."

Investors are said to be still concerned about the aftermath of Brexit. According to reports, operators are weighing the probable impact of the UK's exit on the British economy in particular and the European market as a whole.

Brian Martin at ANZ said: "The UK's unprecedented decision to leave the European Union has sparked a dramatic flight to safe haven assets and currencies. The initial reaction was pronounced but is now moderating."

Indices in the rest of Asia traded as follows on 27 June at 4.53am GMT:

Last week (24 June), the Dow Jones Industrial Average closed at 17,400.75, down 3.39%, while the FTSE 100 closed at 6,138.69, down 3.15%.

Among commodities, oil prices were trading in the red. While WTI crude oil was trading 0.52% lower at $47.39 (£35.36, €43.01) a barrel, Brent crude was trading 0.25% lower at $48.29 a barrel at 5.02am GMT.