[In-depth] Global market wrap-up _ 080519
- 5 years ago
증시 대담
It's time now for an in-depth look at the market action on this Monday, and for that I'm joined on the line by Dr. Hwang Sei-woon, Research Fellow at the Korea Capital Market Institute.
Dr. Hwang, thank you for coming on as always.
Thank you.
Korean stocks have now more than wiped out all of the gains they'd seen this year. The Kosdaq back to where it was in January 2015, and the Kospi below 19-50. What's the story today in Korea and elsewhere?
Asian shares slid to 6-month lows on Monday and the Chinese yuan slumped to a more than decade trough as a rapid escalation in the Sino-U.S. trade war sent investors stampeding to traditional safe harbors including the yen, bonds and gold.
Markets have been badly spooked since U.S. President Donald Trump abruptly declared he would slap 10% tariffs on $300 billion in Chinese imports, ending a month-long trade truce. In response, China's yuan burst beyond the psychological 7-per-dollar threshold in a move that threatened to unleash a new front in the trade hostilities.
Seoul stocks extended losses on Monday as investors off-loaded large-cap stocks amid growing concerns over trade tensions between the world's two largest economies and South Korea's own row with Japan. The benchmark KOSPI fell 2.10%, while Japan’s Nikkei dropped 2.41%.
Now the Korean won is also at the weakest it's been against the U.S. dollar in more than two and a half years, crossing the 12-hundred threshold today. It doesn't seem like the causes of this are going to be solved in the short run, so how high is the exchange rate going to go?
In the face of the escalating American-Sino trade war, its own trade feud with Japan and its worsening economic conditions, South Korea's currency is set to further slide in the coming weeks, probably touching the 1,250-won threshold temporarily.
After opening at 1,203.60, the local currency expanded its losses against the dollar on news that the Chinese yuan fell to the lowest level on record against the greenback on growing worries that the world's two largest economies' sparing over trade may continue longer than expected.
The local currency began to slide despite a recent U.S. rate cut, usually a source of weakening for the greenback. Trump administration's move to impose additional import tariffs on Chinese goods is prompting concerns of a global economic slowdown, which in turn strengthens the dollar. However, the exchange rate is expected to remain at around 1,200 won as the local authorities are expected to take active steps to stabilize the market.
This week we can expect to learn more from the government how about they're responding to Japan's whitelist decisions. Also, the finance ministry is releasing some figures on the economy. What should we be watching in the week ahead?
These are some key events to watch out for this week.
On Tuesday, the Bank of Korea will release the balance of payments in June. Current account surplus has been shrinking down due to deteriorating commodity balan
It's time now for an in-depth look at the market action on this Monday, and for that I'm joined on the line by Dr. Hwang Sei-woon, Research Fellow at the Korea Capital Market Institute.
Dr. Hwang, thank you for coming on as always.
Thank you.
Korean stocks have now more than wiped out all of the gains they'd seen this year. The Kosdaq back to where it was in January 2015, and the Kospi below 19-50. What's the story today in Korea and elsewhere?
Asian shares slid to 6-month lows on Monday and the Chinese yuan slumped to a more than decade trough as a rapid escalation in the Sino-U.S. trade war sent investors stampeding to traditional safe harbors including the yen, bonds and gold.
Markets have been badly spooked since U.S. President Donald Trump abruptly declared he would slap 10% tariffs on $300 billion in Chinese imports, ending a month-long trade truce. In response, China's yuan burst beyond the psychological 7-per-dollar threshold in a move that threatened to unleash a new front in the trade hostilities.
Seoul stocks extended losses on Monday as investors off-loaded large-cap stocks amid growing concerns over trade tensions between the world's two largest economies and South Korea's own row with Japan. The benchmark KOSPI fell 2.10%, while Japan’s Nikkei dropped 2.41%.
Now the Korean won is also at the weakest it's been against the U.S. dollar in more than two and a half years, crossing the 12-hundred threshold today. It doesn't seem like the causes of this are going to be solved in the short run, so how high is the exchange rate going to go?
In the face of the escalating American-Sino trade war, its own trade feud with Japan and its worsening economic conditions, South Korea's currency is set to further slide in the coming weeks, probably touching the 1,250-won threshold temporarily.
After opening at 1,203.60, the local currency expanded its losses against the dollar on news that the Chinese yuan fell to the lowest level on record against the greenback on growing worries that the world's two largest economies' sparing over trade may continue longer than expected.
The local currency began to slide despite a recent U.S. rate cut, usually a source of weakening for the greenback. Trump administration's move to impose additional import tariffs on Chinese goods is prompting concerns of a global economic slowdown, which in turn strengthens the dollar. However, the exchange rate is expected to remain at around 1,200 won as the local authorities are expected to take active steps to stabilize the market.
This week we can expect to learn more from the government how about they're responding to Japan's whitelist decisions. Also, the finance ministry is releasing some figures on the economy. What should we be watching in the week ahead?
These are some key events to watch out for this week.
On Tuesday, the Bank of Korea will release the balance of payments in June. Current account surplus has been shrinking down due to deteriorating commodity balan