News / Asia

Asian Markets Continue Global Slump

A photographer takes pictures of a screen showing the Korea Composite Stock Price Index at the Korea Exchange Bank headquarters in Seoul, South Korea, August 5, 2011
A photographer takes pictures of a screen showing the Korea Composite Stock Price Index at the Korea Exchange Bank headquarters in Seoul, South Korea, August 5, 2011
TEXT SIZE - +

Asia continued to participate in the major global equity markets sell-off Friday. Fears of another drop into recession for the world economy spooked investors across the region. Japan’s benchmark Nikkei closed at its lowest level in five months, after falling nearly 3.75 of a percent in the latest session.

Stock prices also tumbled across the board from Mumbai to Hong Kong. Overall the major regional indexes are off about 10 percent from the peaks reached during May.

South Korea’s key KOSPI index dropped 3.7 percent to finish at its lowest mark in 20 months.

Kim Ji-whan, head of research at Hana Daetoo Securities in Seoul notes the South Korean market is undervalued and the country's economy is very strong compared to other advanced nations.

"But the problem is that most of the Korean big companies listed in the stock market are mostly export driven," said Kim. "That means they are heavily dependent on demand from the global economy. And, also, there are worries that the U.S. dollar could get weaker. And that means the Korean Won will get stronger. Korean exporters will suffer."

Foreign exchange markets were calmer than they were Thursday with anticipation of more intervention by Japan’s Finance Ministry. That kept the US dollar stabilized around 79 yen.

With economic vital signs rapidly growing weaker on both sides of the Atlantic, market researcher Kim does not expect an immediate recovery for equities here in Asia.

"We have to wait, at least, one or two months, before we see any economic indicators getting better," he said. "Until then most of the Asian markets, of course including Korea, will suffer I guess."

South Korea's Ministry of Strategy and Finance confirms it convened an emergency meeting Friday morning as stocks plunged in Seoul and across Asia. The internal meeting was headed by vice minister Lim Jong-ryong. A ministry spokesman says officials will cooperate with related government agencies in an attempt to calm fears that are permeating the equity markets.

With China trying to slow its dynamic economy, the world’s second largest, analysts say there is a lack of a significant anchor for global growth.

That scenario has sent investors fleeing to the few investment instruments seen as still reliable should there be a huge worldwide meltdown.

Market players say there is now caution about the traditional safe haven of gold bullion because many investors are now cashing in on the commodity's already steep rise this year. They say that may force gold prices lower early next week.

Bonds issued by the U.S. Treasury are in demand, despite rates on some of the inflation-protected notes dipping below zero, meaning worried investors are essentially paying the United States government to hold their money.

You May Like

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid