The Nikkei started out on a down leg, falling nearly 2%, but came back to trade flat. The Hang Send dropped 0.9%, the Australia ASX 200 shed 1.8%, the Shanghai Composite drifted lower 0.1% while the Korean Kospi turned up slightly, 0.2%. Part of the early sell off came from down performances in Europe and the U.S. as investors continue to try to digest the full impact of Brexit. Japanese automakers took the brunt of the early selloff with Toyota down 3.2%, Honda off 1.5% and Mazda crumbling 4.7%.
"Until companies get a clear sense of what the impact will be on their earnings, a strong yen will likely to stay as the reason for selling," said one analyst. Banks were in the news and the news wasn't good for Australian banks as shares were hit by a sell-off. Some were saying that the earlier hamming U.K. and EU bank stocks received, according to one report, the worst two-days in history, spilled over into Asia.
The Chinese weakening their currency yesterday though it was pegged a bit higher overnight didn't help matters either as the dollars gains strength and worry about EU bank solvency gather momentum.
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