South Korea's KOSPI down -0.51% at the open
Let's start with a look at the local markets, which have been having a torrid time of late.
South Korea's benchmark KOSPI opened lower this morning...after closing below the 2-thousand mark for the first time in 22 months on Monday.
For the current situation, we have our business correspondent Kim Hyesung on the line.
Hyesung, just start by filling us in on the latest market movements?
Hi, Mark.
The benchmark Kospi was zero-point-five percent down at the start of trading this morning...but jumped back to the 2-thousand level a little before 10 a.m....and is trading at around 19-90 as we speak.
It seems like the government's announcement to boost market confidence has helped a bit.
This morning, the Financial Services Commission held an emergency meeting, with the Chairman of the FSC Choi Jong-ku saying the organization will review a contingency plan and run it to help stabilize the stock market if necessary.
This announcement also comes a day after the FSC said it will inject a 428 million U.S. dollar fund into undervalued local stocks.
The Bank of Korea also held an emergency meeting, vowing to work closely with the FSC and the finance ministry to help stabilize markets.
It's good to know the KOSPI has recovered back to the 2-thousand level, but it's still down more than six percent compared to early last week...and 20 percent from its peak this January.
Why's the market so bearish at the moment?
Well, it's not just local stocks.
We are seeing a huge market rout...with U.S. stocks...emerging market stocks plunging over the last couple days.
There are a number of factors.
But number one, is the U.S.-China trade spat.
Concerns the escalating trade war between the G2 could slow down global growth...is becoming a reality...with major American companies third quarter earnings reports...by major I mean companies like Amazon, Google parent Alphabet... posting disappointing Q3 earnings...and lower than expected earnings guidance for the fourth quarter.
And overnight, U.S. stocks tumbled again on news the Trump Administration is planning an additional 257 billion dollars' worth of tariffs on Chinese goods as early as December...if talks between Presidents Trump and Xi fail to end the trade war at the G20 in Argentina next month.
There's growing fear this ongoing trade war could hurt Korea's export-oriented economy which is already facing slowing growth....slowing investment, and poor corporate earnings results in the auto and shipping sectors.
So...a combination of external and domestic factors are weighing on markets.
The KOSPI has already lost around 15 percent this month alone, and is down 20 percent from its peak in January.
A lot of the analysts I've talked to say there is no 'good news' to lift up market sentiment for now.
But hopefully, the government's contingency plan can help stabilize markets...and there's a degree of hope we could see an end to five straight sessions of declines today.
Back to you, Mark.
South Korea's benchmark KOSPI opened lower this morning...after closing below the 2-thousand mark for the first time in 22 months on Monday.
For the current situation, we have our business correspondent Kim Hyesung on the line.
Hyesung, just start by filling us in on the latest market movements?
Hi, Mark.
The benchmark Kospi was zero-point-five percent down at the start of trading this morning...but jumped back to the 2-thousand level a little before 10 a.m....and is trading at around 19-90 as we speak.
It seems like the government's announcement to boost market confidence has helped a bit.
This morning, the Financial Services Commission held an emergency meeting, with the Chairman of the FSC Choi Jong-ku saying the organization will review a contingency plan and run it to help stabilize the stock market if necessary.
This announcement also comes a day after the FSC said it will inject a 428 million U.S. dollar fund into undervalued local stocks.
The Bank of Korea also held an emergency meeting, vowing to work closely with the FSC and the finance ministry to help stabilize markets.
It's good to know the KOSPI has recovered back to the 2-thousand level, but it's still down more than six percent compared to early last week...and 20 percent from its peak this January.
Why's the market so bearish at the moment?
Well, it's not just local stocks.
We are seeing a huge market rout...with U.S. stocks...emerging market stocks plunging over the last couple days.
There are a number of factors.
But number one, is the U.S.-China trade spat.
Concerns the escalating trade war between the G2 could slow down global growth...is becoming a reality...with major American companies third quarter earnings reports...by major I mean companies like Amazon, Google parent Alphabet... posting disappointing Q3 earnings...and lower than expected earnings guidance for the fourth quarter.
And overnight, U.S. stocks tumbled again on news the Trump Administration is planning an additional 257 billion dollars' worth of tariffs on Chinese goods as early as December...if talks between Presidents Trump and Xi fail to end the trade war at the G20 in Argentina next month.
There's growing fear this ongoing trade war could hurt Korea's export-oriented economy which is already facing slowing growth....slowing investment, and poor corporate earnings results in the auto and shipping sectors.
So...a combination of external and domestic factors are weighing on markets.
The KOSPI has already lost around 15 percent this month alone, and is down 20 percent from its peak in January.
A lot of the analysts I've talked to say there is no 'good news' to lift up market sentiment for now.
But hopefully, the government's contingency plan can help stabilize markets...and there's a degree of hope we could see an end to five straight sessions of declines today.
Back to you, Mark.