HONG KONG, June 28 — Sterling and Asian emerging market currencies regained some footing today and crude oil bounced as investors scooped up beaten down assets after Britain’s shock vote to exit the European Union.

But in a sign that sentiment remained fragile, trading volumes remained light and price action was choppy across markets.

Asian shares were generally weaker, however, despite a 0.6 per cent gain in US stock futures which suggested a stronger opening on Wall Street later in the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 per cent, after Wall Street marked its worst two-day drop in about 10 months yesterday.

The Nikkei was down 0.3 per cent even as policymakers reiterated concerns about foreign exchange moves.

"Friday’s Brexit jump scare has faded, but markets are still worried" about its possible effect on global demand, SLW brokerage trader João Paulo de Gracia Corrêa said.

In currency markets, sterling was changing hands at US$1.3297 (RM5.44), after falling to a three-decade low of US$1.3122 yesterday, its deepest trough since 1985.

Against the yen, sterling rose 1 per cent to 135.72 not far from Friday’s 3-1/2 year low of 133.18. The euro stood at 82.93 pence after scaling a two-year peak of 83.79 pence yesterday.

The euro edged down slightly to US$1.1041 not far above Friday’s three-month low of US$1.0912 as it faced the impact of the British vote outcome.

"In the near term, risk aversion and market uncertainty makes the euro less attractive to investors," Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a note to clients.

"In the long run, Brexit also raises questions about the Eurozone’s viability because if major countries like Britain start dropping out the EU, nationalism could drive smaller Eurozone nations to exit out of the euro," she said, adding that she expects the euro to "make another run" for the US$1.0900 level.

Early signs of a cautious return in demand for riskier assets was evident in the high-yielding Aussie and the New Zealand dollar, which helped put a floor under other emerging market currencies in Asia.

Anticipating yet another round of global policy easing by major central banks, government bond yields pushed deeper into negative territory. Yields on ten-year and 20-year Japanese debt plunged to fresh record lows.

Gold, one of the rare outliers in global financial markets in the last few days, came in for a bit of profit taking with the precious metal down 0.3 per cent. Silver fell 0.4 per cent.

Crude oil prices regained some of their overnight losses after tumbling nearly 3 per cent yesterday.

US crude added 1 per cent to US$46.78 a barrel after shedding 2.8 per cent yesterday, while Brent rose 1 per cent to US$47.65 after skidding 2.6 per cent and touching seven-week lows overnight. — Reuters