Korean stocks drop as U.S. markets slump
- 6 years ago
South Korea's two main stock markets retreated sharply on Tuesday,... following Monday's massive losses on Wall Street.
The Dow's biggest daily points drop in history came amid fears over inflation and rapid U.S. rate hikes as the new Federal Reserve chairman took the reins from Janet Yellen.
Kim Ji-yeon reports.
Korea's benchmark KOSPI hovered at the 2-thousand-415 level during mid-day trading on Tuesday... after plunging more than two-percent during early trading... mainly due to historic losses on Wall Street.
The KOSPI had already retraced by more than one-percent during the previous two sessions,... falling below the two-thousand-500 level on Monday.
The secondary tech-heavy KOSDAQ also fell by more than three-percent on the opening bell on Tuesday... kicking off at 825-point-nine... falling to the 817-level in mid-day trading.
It continued its downward trend from Monday... when it slumped more than four-percent.
The losses took their lead from U.S. markets, which tumbled on concerns that both inflation and interest rates would rise faster than expected... after Jerome Powell took over as chairman of the U.S. Federal Reserve replacing Janet Yellen.
The Dow Jones Industrial Average recorded its worst one-day points drop in history... falling four-point-six-percent from its previous session to 24-thousand-345 on Monday.
The S&P 500 dropped more than four percent... its largest percentage drop since 2011... and the Nasdaq shed about four percent as well.
In response, the Bank of Korea Governor Lee Ju-yeol said he will continue to closely monitor the market volatility.
A report released by the BOK's New York branch suggests it's highly likely the Federal Reserve will raise rates four times this year.
If the Fed raises rates next month... it would surpass that of the BOK's... which has maintained rates at the one-point-five percent level... on par with the U.S.
Kim Ji-yeon, Arirang News.
The Dow's biggest daily points drop in history came amid fears over inflation and rapid U.S. rate hikes as the new Federal Reserve chairman took the reins from Janet Yellen.
Kim Ji-yeon reports.
Korea's benchmark KOSPI hovered at the 2-thousand-415 level during mid-day trading on Tuesday... after plunging more than two-percent during early trading... mainly due to historic losses on Wall Street.
The KOSPI had already retraced by more than one-percent during the previous two sessions,... falling below the two-thousand-500 level on Monday.
The secondary tech-heavy KOSDAQ also fell by more than three-percent on the opening bell on Tuesday... kicking off at 825-point-nine... falling to the 817-level in mid-day trading.
It continued its downward trend from Monday... when it slumped more than four-percent.
The losses took their lead from U.S. markets, which tumbled on concerns that both inflation and interest rates would rise faster than expected... after Jerome Powell took over as chairman of the U.S. Federal Reserve replacing Janet Yellen.
The Dow Jones Industrial Average recorded its worst one-day points drop in history... falling four-point-six-percent from its previous session to 24-thousand-345 on Monday.
The S&P 500 dropped more than four percent... its largest percentage drop since 2011... and the Nasdaq shed about four percent as well.
In response, the Bank of Korea Governor Lee Ju-yeol said he will continue to closely monitor the market volatility.
A report released by the BOK's New York branch suggests it's highly likely the Federal Reserve will raise rates four times this year.
If the Fed raises rates next month... it would surpass that of the BOK's... which has maintained rates at the one-point-five percent level... on par with the U.S.
Kim Ji-yeon, Arirang News.