Britain has voted to leave the European Union which is a historic decision that will have a huge effects in the world. The value of the British pound sunk as financial markets absorbed the news.
Financial institution took a beating as the prospect of a sinking pound eating into the profits of British companies as well as broader worries about the financial sector have battered the shares of the British banks HSBC and Standard Chartered.
In Hong Kong, the Hang Seng index are down by 5% pulled down by stocks in banks, which had fallen more than 6%.
But HSBC’s stock slipped almost 12%, and Standard Chartered’s plummeted more than 13%. Prudential also saw its shares sink more than 11%.
Shares in Indian and Chinese banks have dropped, too, and Japanese bank shares have experienced a rout as the yen has surged.
Morgan Stanley has already said it will consider moving its European headquarters to Dublin or Frankfurt in the event of a vote to leave. Markets are a factor in the cost of potentially streamlining operations in Britain and shifting operations to other parts of Europe.
The United Kingdom voted to leave the European Union, a decision that sent global markets into a tailspin early Friday.
The margin of victory was 52% to 48%.
It is the first departure from the alliance since the EU was formed 43 years ago. It could prompt other member nations to follow the U.K.'s lead and reverse a decades-long drive for European unity.
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