Korean stocks continue to slide on trade worries
Arirang News
2019-08-06
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코스피 1,910대 후퇴…코스닥 3% 하락
A day after South Korea saw a 'Black Monday', the country's two major stock markets plunged further.
This is mainly due to worsening trade tensions.
Hong Yoo help us look beyond the digits.
(Standup) ed: Steve
In Tuesday's session, Korea's benchmark KOSPI closed at 1,917-point-5… down more than 1-point-5 percent from Monday's close.
It was the lowest closing since early 2016.
The KOSPI had opened even lower at 19-hundred after a big overnight fall, and it recovered during the session only slightly.
Analysts pointed to all the external factors including investors' concerns over escalating trade tensions between China and the U.S., a Fed rate cut that was less aggressive than some hoped for, and Japan's removing South Korea from its whitelist of trading partners.
"I would say the most direct cause of such instability is thte fall in the yuan following U.S. President Donald Trump's vow to impose additional tariffs on Chinese goods. As a result, fears that the trade negotiations between the two countries might not resume in the near future turned investors away."
The analyst added that in times like this investors turn to safe havens like gold.
On Monday local time, gold prices closed at around 1,464 dollars an ounce, up 1-point-3 percent, the highest in 6 years.
Korea's tech-heavy junior index, the KOSDAQ, which yesterday lost almost 7-and-a-half percent... closed at around 551-and-a-half, down another 3-point-2 percent.
It was the lowest close since the very end of 2014.
Another analyst predicts the global stock market will start to stabilize from mid-August.
"We need to pay attention to the Beidaihe Conference that is taking place this week because it was in this meeting that China started talks on trade tensions with the U.S. actively last year. Beijing sought trade talks with Washington after this meeting last summer, which boosted global stocks."
Meanwhile, the Korean currency closed at around 1-thousand-2-hundred-15 won against the U.S. dollar, unchanged from the day before.
Hong Yoo, Arirang News.
A day after South Korea saw a 'Black Monday', the country's two major stock markets plunged further.
This is mainly due to worsening trade tensions.
Hong Yoo help us look beyond the digits.
(Standup) ed: Steve
In Tuesday's session, Korea's benchmark KOSPI closed at 1,917-point-5… down more than 1-point-5 percent from Monday's close.
It was the lowest closing since early 2016.
The KOSPI had opened even lower at 19-hundred after a big overnight fall, and it recovered during the session only slightly.
Analysts pointed to all the external factors including investors' concerns over escalating trade tensions between China and the U.S., a Fed rate cut that was less aggressive than some hoped for, and Japan's removing South Korea from its whitelist of trading partners.
"I would say the most direct cause of such instability is thte fall in the yuan following U.S. President Donald Trump's vow to impose additional tariffs on Chinese goods. As a result, fears that the trade negotiations between the two countries might not resume in the near future turned investors away."
The analyst added that in times like this investors turn to safe havens like gold.
On Monday local time, gold prices closed at around 1,464 dollars an ounce, up 1-point-3 percent, the highest in 6 years.
Korea's tech-heavy junior index, the KOSDAQ, which yesterday lost almost 7-and-a-half percent... closed at around 551-and-a-half, down another 3-point-2 percent.
It was the lowest close since the very end of 2014.
Another analyst predicts the global stock market will start to stabilize from mid-August.
"We need to pay attention to the Beidaihe Conference that is taking place this week because it was in this meeting that China started talks on trade tensions with the U.S. actively last year. Beijing sought trade talks with Washington after this meeting last summer, which boosted global stocks."
Meanwhile, the Korean currency closed at around 1-thousand-2-hundred-15 won against the U.S. dollar, unchanged from the day before.
Hong Yoo, Arirang News.
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