Victory Nears for US Biden... Korea Stocks, Bonds, and Won Value Show 'Triple Strength'

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As Joe Biden, the Democratic candidate in the United States, secures 264 electoral votes and draws closer to winning the presidential election, the domestic financial market is showing simultaneous rises in stocks, bonds, and the value of the Korean won.

As of 10:54 a.m. on the 5th, the KOSPI index is trading at 2393.67, up 1.54% (36.35 points) from the previous day. The KOSDAQ index is recording 839.57, up 1.52% (12.60 points). In particular, major companies in Korea's representative new growth sectors such as bio and secondary batteries are showing notable gains.

At the same time, the won-dollar exchange rate is trading at 1131.93 won, down 5.67 won (indicating a rise in the won's value). The won-dollar exchange rate started the day at 1130.0 won, down 7.7 won, and during the session, it even fell to the 1120 won level.

The expectation of continued global dollar weakness and revived risk asset preference sentiment due to Biden's likely victory is interpreted as the cause. The news from the Bank of Korea about the continued current account surplus also strengthened the won. The Bank of Korea announced that the current account surplus for September was $10.21 billion, marking the largest surplus in two years. The significant improvement in exports expanded the current account surplus.

Bond prices showed strength (bond yields fell). It is believed that the absence of a 'Blue Wave,' where the Democratic Party controls both the House and Senate, had an impact. If the Republican Party controls the Senate, even if Biden is elected, the process of passing aggressive fiscal stimulus measures may not proceed smoothly.

On this day, the 10-year government bond yield was 1.543%, showing a decline from the previous day. The 3-year government bond was trading at 0.941%.

This content was produced with the assistance of AI translation services.