KOSPI Falls Below 3200... Financial Market Pandemic Shock

Exchange Rate Rises by 2.5 Won to 1147.5 Won

On the 9th, as the spread of COVID-19 intensifies, the KOSPI index is displayed in the dealing room of Hana Bank in Euljiro, Seoul. On this day, the KOSPI started at 3,245.52, down 7.16 points (0.22%) from the previous session, showing a downward trend. Photo by Moon Honam munonam@

[Asia Economy New York=Correspondent Baek Jong-min, Reporter Park Ji-hwan] As the fourth wave of COVID-19 intensifies, the financial markets are also being significantly shaken, with stock prices plummeting and exchange rates soaring.

On the morning of the 9th, the KOSPI extended its losses, falling 1.93% to 3189.79, dropping below the 3200 mark. The KOSDAQ also fell 1.99% to 1013.91. The market showed weakness overall, with all stocks from Samsung Electronics, ranked first in market capitalization, to LG, ranked 14th, showing declines.

In the Seoul foreign exchange market that day, the won-dollar exchange rate started at 1147.5 won per dollar, up 2.5 won, and has been fluctuating around the 1147 won level. The exchange rate set a new high the previous day, reaching its highest level in nine months since October 16 last year (1147.4 won), and continued its upward trend today. The exchange rate has risen more than 15 won since the beginning of this week.

Overnight in the New York stock market, the Dow Jones Industrial Average (-0.75%), S&P 500 (-0.86%), and Nasdaq (-0.72%) all fell simultaneously. This is interpreted as investors’ growing concerns about the slowdown in economic recovery due to the rapid global resurgence of COVID-19.

In the New York financial market, the US 10-year Treasury yield also fell intraday to 1.25%. The decline in Treasury yields expanded as concerns over delayed economic recovery led to a preference for safe assets. In March, Treasury yields rose to 1.78% reflecting worries about rapidly rising inflation amid a fast economic recovery. A drop in Treasury yields means an increase in Treasury prices. German bond yields also fell to -0.321%, the lowest since the end of March.

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