Scottish referendum: Pound and shares rise on 'No' vote

The pound sterling has hit a two-year high against the euro and a two-week high against the US dollar, as early counts suggested a 'No' vote to independence in Scotland's referendum.

In early Asian trade, sterling spiked to 78.12 pence per euro.

The pound also jumped nearly 0.8% to $1.6525 against the US dollar.

The rises stem from early results from smaller regions, showing a lead for the 'No' camp in the Scottish independence vote.

A vote to stay in the United Kingdom 'would remove uncertainty over some very big issues', said Alan Ruskin, global head of G10 foreign-exchange strategy at Deutsche Bank.

Analysis: What happens next? David Kuo, Chief Executive, The Motley Fool (Singapore)

Whether Scotland wins or loses the referendum, it will have won concessions from the UK government.

Exactly what these concessions amount to remains to be seen. But Scotland will likely have greater tax-raising powers and greater control over its budgets.

It is only a question of time before Northern Ireland and Wales ask for similar concessions. And they will most probably be granted them too.

The upshot is that the UK could be fragmented fiscally, though importantly, not geographically.

This leaves some unanswered questions about sterling, namely, what does monetary union within the United Kingdom actually mean? Investors don't like unanswered questions.

A 'No' vote could be bad for the UK. A 'Yes' vote could be just as destabilising, unless the UK government can find a way of putting the genie back in the bottle.

Elsewhere in Asia, regional markets were mostly higher, taking their cues from Wall Street.

US stocks rose overnight, one day after the central bank - the US Federal Reserve - said it will keep its pledge to keep interest rates low. Those comments helped to lift the Dow Jones Industrial Average and the S&P 500 index to record highs.

Markets in Japan, Australia and Taiwan are all trading in the positive column. Japan's benchmark Nikkei index is up by 1.5%. Gains are also driven by yen weakness, which has prompted investors to buy up shares of export companies.

Alibaba IPO

Away from Scotland, eyes are also on the world's biggest initial public offering (IPO) due to take place later today. That is when Chinese e-commerce juggernaut Alibaba will float its shares on the New York Stock Exchange.

Shares in Alibaba have been priced at $68 (£42), the top end of the range and the IPO will raise $21.8bn, making it one of the largest flotations ever.

It values Alibaba, which accounts for 80% of all online retail sales in China, at $167.6bn.

That value surpasses such corporate titans as Walt Disney and Boeing.

The final amount raised from the sale could change, depending on the final allotment allocation.

If underwriters exercise an option to sell more shares, the money raised could increase to $25bn, beating the record listing held by Agricultural Bank of China. That flotation in 2010 raised $22bn.