US Tapering Becomes Visible... KOSPI Falls Below 3100

[Asia Economy Reporter Dongwoo Lee] As the Federal Reserve (Fed) in the United States made the possibility of tapering (asset purchase reduction) within the year more visible, the stock and foreign exchange markets fluctuated on the 19th.

On that day, the KOSPI closed at 3,097.83, down 61.10 points (1.93%) from the previous day. It was the first time in over four months since April 1 (3,087.40) that the KOSPI fell below the 3,100 level.

The KOSPI seemed to take a brief breather after rebounding the previous day, but investor sentiment weakened again due to the possibility of tapering in the U.S., causing a sharp decline. The KOSPI had already fallen for eight consecutive trading days from the 5th to the 17th.

The KOSDAQ index closed at 991.15, down 29.93 points (2.93%) from the previous day, falling below the 1,000 mark for the first time in two months since June 16 (998.49).

The exchange rate, which had fallen after seven trading days the previous day, surged again reflecting a 'strong dollar' due to the possibility of tapering. The won-dollar exchange rate closed at 1,176.2 won per dollar, up 8.2 won from the previous day.

Foreign investors showed a net selling trend for eight consecutive trading days from the 9th to the 19th in the stock market. The total net selling amount was 8.0531 trillion won.

On the other hand, the bond market showed relatively little volatility on the day and generally continued a downward trend.

The yield on 3-year government bonds closed at 1.360% per annum, down 2.9 basis points (1bp=0.01 percentage points) from the previous trading day, and the 10-year bond yield closed at 1.868% per annum, down 1.3 basis points. The 3-year yield has fallen for eight consecutive trading days, and the 10-year yield for four consecutive days.

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