- Title: Asian stocks slip after Italy's Renzi loses reform referendum
- Date: 5th December 2016
- Summary: TOKYO, JAPAN (DECEMBER 5, 2016) (REUTERS) EXTERIOR OF TOKYO STOCK EXCHANGE (TSE) BUILDING SIGN READING (English): "JPX TOYO STOCK EXCHANGE" ELECTRONIC STOCK BOARD ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE AT 18323.46 DOWN 26.46 POINTS TSE STAFF WORKING TSE MARKET CENTER AND REVOLVING STOCK PRICE TICKER REVOLVING STOCK PRICE TICKER TSE MARKET CENTER ELECTRONIC STOCK BOARD JPX GRAPHIC HONG KONG, CHINA (DECEMBER 5, 2016) (REUTERS) HONG KONG EXCHANGE SQUARE HONG KONG EXCHANGE AND CLEARINGS FLAG OPENING BELL RINGS AT HONG KONG STOCK EXCHANGE FLOOR HONG KONG STOCK LISTINGS ON SCREEN SCREEN SHOWING RED DOWNWARDS ARROW READING (English): "HANG SENG INDEX, 22530.61" VARIOUS OF TRADERS HONG KONG STOCK LISTING CEO OF GEO SECURITIES LIMITED, FRANCIS LUN, WORKING AT COMPUTER LUN'S HANDS TYPING LUN LOOKING AT COMPUTER SCREEN SHOWING STOCK CHARTS (SOUNDBITE)(English) CEO OF GEO SECURITIES LIMITED, FRANCIS LUN, SAYING: "There is a lot of uncertainty in international markets like the referendum in Italy and we don't know whether the EU is going to break up or not, now then in the U.S. very clearly the interest rate will hike next week. So there is too much uncertainty, and everybody is holding back, right now cash is the king." SEOUL, SOUTH KOREA (DECEMBER 5, 2016) (REUTERS) SEOUL STREET PEOPLE WALKING ON SEOUL STREET INTERIOR OF DEALING ROOM AT KEB HANA BANK ELECTRONIC BOARD SHOWING KOREA COMPOSITE STOCK PRICE INDEX (KOSPI) DEALERS WORKING DEALER TALKING ON THE PHONE DEALERS TALKING TO EACH OTHER VARIOUS OF DEALERS WORKING MORE OF DEALING ROOM
- Embargoed: 20th December 2016 03:22
- Keywords: markets open tokyo hong kong seoul italy matteo renzi referendum constitution reform euro zone
- Location: TOKYO, JAPAN/HONG KONG, CHINA/SOUEL, SOUTH KOREA
- City: TOKYO, JAPAN/HONG KONG, CHINA/SOUEL, SOUTH KOREA
- Country: Various
- Reuters ID: LVA0015BLWBPJ
- Aspect Ratio: 16:9
- Story Text: Stock markets in Tokyo, Hong Kong and Seoul opened down on Monday (December 5) after Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on constitutional reform that could destabilise the country's shaky banking system.
Japan's benchmark Nikkei average opened down 0.41 percent at 18,349.92 on Monday, while the broader Topix shed 0.51 percent to 1,470.42.
Despite the beginning of the Hong Kong-Shenzhen stock connect, the Hang Seng Index opened up 0.1 percent at 22,580.75 points, but slipped 0.18 percent as of 0300 gmt.
Market watchers say investors are holding back due to the uncertainties in the markets.
"There is a lot of uncertainty in international markets like the referendum in Italy and we don't know whether the EU is going to break up or not, now then in the U.S. very clearly the interest rate will hike next week. So there is too much uncertainty, and everybody is holding back, right now cash is the king," said Francis Lun, CEO of GEO Securities Limited.
The Korea Composite Stock Price Index (KOSPI) was down 0.34 percent at 1,963.94 points as of 0140GMT.
Investors and Europe's politicians fear victory for the opposition 'No' camp could cause political instability and renewed turmoil for Italy's banking sector, which has been hit by fears over its huge exposure to bad loans built up during years of economic downturn.
Renzi's resignation represents a fresh blow to the European Union, the euro zone's heavily indebted third-largest economy which is struggling to overcome a raft of crises.
Markets had earlier taken some encouragement when Austria's far-right presidential candidate was soundly defeated by a pro-European contender, confounding forecasts of a tight election.
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