Asia reacts to UK government’s Brexit defeat

Asia reacts to UK government’s Brexit defeat

16/01/19

The UK government’s defeat in Tuesday’s vote on its Brexit deal has captured global attention. In Asia, the outcome met with a mixed reaction.

Markets were ‘subdued’ in response to the vote, The Straits Times reports, without significant volatility. This is perhaps due to the fact that – as long as Prime Minister Theresa May survives a no confidence vote on Wednesday evening – the defeat only adds to the ongoing uncertainty; what one analyst described as “Brexit fatigue.”

However, a raft of Asian companies have warned of the “serious consequences” of a no-deal Brexit, according to the Nikkei Asian Review, which quotes a Nissan spokesperson as saying there will be “serious implications for British industry,” in the event of a departure without a deal.

The BBC, meanwhile, reports that Asian governments “have moved to reassure businesses” following the vote, with the Japanese government promising to support affected firms and South Korean officials holding special meetings on the issue today.