Major Asian markets closed higher on Monday, shrugging off Friday's global selloff sparked by the U.K.'s unexpected vote to leave the European Union (EU).
Australia's ASX 200 closed higher by 24.04 points, or 0.47 percent, at 5,137.23, reversing earlier losses of near 1 percent. The financials sub-index, which accounts for nearly half of the broader index, ended down 0.24 percent while major Australian banks closed mixed.
In South Korea, the Kospi finished near flat at 1,926.85. Hong Kong's Hang Seng index traded near flat in the late afternoon session. Chinese mainland markets closed in positive territory, with the Shanghai composite up 41.23 points, or 1.44 percent, at 2,895.52 and the Shenzhen composite higher by 46.09 points, or 2.42 percent, at 1,946.69.
Japanese shares led gains across the region, with the benchmark Nikkei 225 closing up 357.19 points, or 2.39 percent, at 15,309.21. The index had tumbled 7.92 percent Friday on the back of fresh yen strength.
Analysts agreed that markets were looking at short-term volatility surrounding Brexit. On Friday, around $2.1 trillion was wiped off the value of global markets. Japan's benchmark index fell near 8 percent, the Dow dropped 610 points and sterling hit a more-than-30-year low against the dollar.
Chris Weston, chief market strategist at spreadbettor IG, said in an afternoon note on Monday that "risks are building," and that the buying seen today "suggest most in the market feel we are seeing a short-term shock than something more protracted and sinister."
JPMorgan, in a note to clients Friday, agreed, downplaying the long-term global impact of a Brexit. The bank said the sell-off in equities Friday was due to the surprise and uncertainty surrounding the outcome of the vote. But, the bank added, "beyond a few weeks of volatility, this shock has a largely regional impact."
"Globally, we remain simply in a low-growth world," JPMorgan said in the note.
The leave camp secured 51.9 percent of the vote in the U.K. referendum, with 17.4 million votes. The ramifications of the unexpected result have been reverberating across the wider political and economic establishment since Friday, as British Prime Minister David Cameron resigned.