Our Asia ex-Japan research team explores the impact of the UK Referendum decision on Asia.
Beyond the trade channel, once financial, confidence and psychological channels are taken into account, we caution not to underestimate the depth and reach of financial market contagion to Asia.
A globally coordinated central bank response to a global financial market meltdown is quite likely, such as liquidity support through FX swap arrangements and possible FX intervention, but with policy credibility at such a low it is unclear how successful these emergency measures would ultimately be when there is extreme market risk aversion.
The countries likely to be most affected are Hong Kong and Singapore and at the other end of the spectrum, China, Indonesia and the Philippines may be least affected.
Log on to the Global Research Portal for full analysis of the global impact of the Brexit vote. And read views from Rob Subbaraman, our Chief Economist in Asia ex-Japan in Europe-reliant companies take a hit from Brexit in the Nikkei Asian Review.