Brexit leads to biggest global financial shock since 2008

Coming against the backdrop of fragile recovery in the world economy, it has rattled investors reflecting significant volatility in stock and currency markets.

Stock markets worldwide went into a tizzy on Friday, with Asian shares tumbling nearly 8 per cent, as Britain's decision to leave the European Union rattled investor sentiments globally.

European markets too opened on a negative note with London Stock Exchange's FTSE index crashing over 7 per cent or 467 points to 5,875.

In a development that would have far reaching consequences for Europe as well as the global economy, Britain has voted to exit the 28-nation EU.

Coming against the backdrop of fragile recovery in the world economy, it has rattled investors reflecting significant volatility in stock and currency markets.

Japanese and Indian shares bore the brunt of sell-off as their key indices shed more than 1,000 points.

Japan's Nikkei 225 plummeted nearly 8 per cent or more than 1,286 points to close at 14,952.02 points, while Hong Kong's benchmark Hang Seng Index shed over 4 per cent or 878 points to 19,992 points.

The 30-share BSE Sensex was down more than 900 points in the afternoon trade at 26,094 points.

It shed more than 1,000 points in the early session.

While the Asian stocks witnessed a massive sell off, Chinese scrips seemed less impacted SSE Composite Index slipped marginally to end the day at 2,854.29 points.

In early trade, France's benchmark index Cac 40 as well as German key index Dax went down nearly 8 per cent.

Even as policymakers worldwide were preparing to deal with any eventuality on account of Brexit referendum, the final outcome is expected to result in possible recalibration of strategies and could further delay rate hike by the US Federal Reserve.

Financial services major Ambit Investment Advisors' CEO Andrew Holland said Brexit is a huge negative and has far reaching ramifications for global markets and economies.

Besides, there are mounting concerns that there could be 'copycat' referendums in other EU nations to decide on whether to stay or leave the bloc.

Brexit referendum outcome also comes two days ahead of general elections in Spain.