Market and product

Global crude oil benchmarks slumped by more than $3/bbl, while shares of major petrochemical firms in Asia crashed on Friday, as the UK voted out of the EU, termed as “Brexit”, after a nationwide referendum.

At 12:34 Singapore time (04:34 GMT, 05:34 UK time), August Brent ICE Brent futures plunged by $2.83/bbl at $48.08/bbl, after hitting a low of $47.54/bbl earlier in the session. August NYMEX WTI crude futures tumbled by $2.84/bbl at $47.27/bbl, after recording a session low of $46.70/bbl.

Both benchmark futures closed higher overnight amid volatile trade.

Asian bourses slumped as investors digested the looming certainty that the UK will leave the EU.

The British Broadcasting Corp (BBC), which was covering the live results of the UK referendum, announced around midday its forecast that the “Leave” EU campaign has won on a vote of 52% versus 48% for “Remain”.

Japan’s benchmark Nikkei 225 index led the decline in Asian financial markets, crashing by 7.34% to 15,046.36.

Among Japanese petrochemical firms, Mitsui Chemicals plunged 9.87%, Mitsubishi Chemicals Holding slumped 8.07% and JX Holdings declined 5.67%.

In Hong Kong, oil and gas giant PetroChina fell 6.27% , while Sinopec Shanghai Petrochemical was down 2.62% as the Hang Seng Index shed 4.67% to 19,894.12.

In South Korea, LG Chem slumped by 3.75% while Lotte Chemical Corp was down by 3.90% as the KOSPI Index retreated 3.89% at 1,909.34.

In Thailand, PTT Global Chemical slumped 4.64%, while in Singapore, palm oil and oleochemicals major Wilmar declined 3.65%, with the Straits Times Index down 2.55% at 2,722.72.

In the currency market, the British pound tumbled to its lowest levels against the US dollar since 1985 as results of the referendum indicate that Brexit has won.

With more than two thirds of ballots now counted, the BBC forecasts that the UK has voted 52% to 48% in favour of leaving the EU after 43 years, in a historic referendum held on 23 June.

Voting turnout was as high as 70 to 80% in many local areas and the UK Electoral Commission estimates a final result to be available Friday morning in the UK, according to media reports.

“A Brexit may present opportunities to Asia despite threatening the stability of UK’s financial sector,” Singapore-based OCBC Bank said in an earlier note.

“In the event that 23rd June’s referendum swings in favour of a Brexit, UK’s position as a financial hub would be shaken as the sector loses its key competitive advantages,” it said.

“On a broader scale, with European finance professionals no longer being able to stay in the UK post-Brexit, we anticipate that eyes would turn onto Asia to accommodate these fresh labour flows, therefore providing Asian markets with the potential gains in human resource,” it added.