Advertisement
Advertisement
Brexit
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Leader of the pro-Brexit United Kingdom Independence Party Nigel Farage reacts to the results at Millbank Tower in central London early on Friday. Photo: AFP

New | It’s Brexit: Hang Seng Index plummets as Britain votes to leave EU in stunning referendum result

The verdict, which triggered a freefall of the British pound and turmoil on world markets, is a shocking turnaround after most polls had suggested Britons wanted to stay in the EU

Brexit

Britain voted to leave the ­European Union after a bitterly divisive referendum campaign, toppling the prime minister, sending global markets plunging and shattering the stability of a project in continental unity ­designed half a century ago to ­prevent another world war.

The decision launches a ­years-long process to renegotiate trade, business and political links between Great Britain and what would become a 27-nation bloc, an unprecedented divorce that could take a decade or more to complete.

“The dawn is breaking on an independent United Kingdom,” said Nigel Farage, leader of the UK Independence Party. “Let June 23 go down in our history as our ­independence day.”

Prime Minister David Cameron, who had led the campaign to keep Britain in the EU, said he would resign by October and left it to his successor to decide when to invoke Article 50, which triggers a departure from the EU.

“I will do everything I can as prime minister to steady the ship over the coming weeks and months,” he said, “but I do not think it would be right for me to try to be the captain that steers the country to its next destination.”

Polls ahead of the vote had shown a close race, and the ­momentum had increasingly ­appeared to be on the “remain” side over the last week. But in an election on Thursday marked by notably high turnout – 72 per cent of the more than 46 million registered voters – “leave” won with 52 per cent of the votes.

The result shocked investors, and stock markets plummeted around the world, with key indexes dropping 10 per cent in ­Germany and about 8 per cent in Japan and Britain. The Hang Seng Index fell by about 1,000 points at one point after the result.

Brexit supporters celebrate as the results come in at a party for the “Leave” camp at Millbank Tower in central London early on Friday. Photo: AFP

The euro fell against the US dollar and the pound dropped to its lowest level since 1985, plunging more than 10 per cent from about US$1.35 before a slight recovery. Bank of England governor Mark Carney sought to reassure markets and promised to take “all the necessary steps to prepare for today’s events.”

In Beijing, China’s central bank pledged to keep domestic ­liquidity ample and the yuan stable. It said the People’s Bank of China had already made “appropriate contingency plans” over the vote, adding that it “will continue to implement prudent monetary policy”.

Sterling down by 9 per cent on Brexit vote results

World leaders, including President Xi Jinping and US President Barack Obama, had before the vote called on Britain to remain in the EU.

Obama yesterday reassured Britain that the so-called “special relationship” between Washington and London would remain strong.

“The United Kingdom and the European Union will remain ­indispensable partners of the United States even as they begin negotiating their ongoing ­relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world,” he said.

In Beijing, Foreign ­Ministry spokeswoman Hua ­Chunying said China respected the choice of the British people and wanted to work hard to continue developing ties. “We hope Britain and the EU can reach a negotiated agreement at an early date. A prosperous and stable Europe is in all sides’ interests,” she said.

Also seeking to calm frayed nerves was the most prominent “leave” campaigner, Boris Johnson. Taking a sombre tone unusual for the flamboyant former ­London mayor, he described the EU as a noble idea which was no longer right for Britain. He said the result in no way meant Britain would be “less united” or “less European.”

Disconsolate supporters of the “Remain” campaign watch the results of the EU referendum being announced at the Royal Festival Hall in London. Photo: AFP
A ballot box is opened for counting at the Titanic Exhibition Centre in Belfast, Northern Ireland. Photo: AP

But even as he spoke, Scotland’s First Minister Nicola Sturgeon said a second Scottish referendum on independence from the UK was now “highly likely.”

The referendum showed Britain to be a sharply divided nation: Strong pro-EU votes in the ­economic and cultural powerhouse of London and semi- autonomous Scotland were countered by sweeping anti-establishment sentiment for an exit across the rest of England, from southern seaside towns to rust-belt former industrial powerhouses in the north.

Boris Johnson, former mayor of London, and wife Marina Wheeler leave a London polling station after casting their votes. Photo: Bloomberg

Britain would be the first major country to leave the EU, which was born from the ashes of the second world war as European leaders sought to build links and avert future hostility. With no precedent, the impact on the ­single market of 500 million people – the world’s largest economy – is unclear.

Leaders from across the EU voiced regret at the British decision. Germany called top diplomats from the EU’s six founding nations to a meeting today, and European Council president Donald Tusk said the bloc would meet without Britain at a summit next week to assess its future.

Post