South Korea’s won fell to its lowest in more than a week on concern rising fuel prices caused by escalating tensions in the Middle East will derail the global economic recovery, hurting exports. Government bonds advanced.
Foreign investors sold more Korean stocks than they bought for the first time in four days as security forces in Libya, holder of Africa’s largest oil reserves, attacked anti- government protesters following ousters of leaders in Tunisia and Egypt. The Kospi index of shares sank to a two-month low as crude oil climbed to the highest level since September 2008. Stock prices of builders slumped the most since 2009, led by Hyundai Engineering & Construction Co., on concern orders will fall as Korean construction sites were attacked in Libya.
“The political situation in the Middle East is one of the reasons driving the won lower as it could affect the global economic recovery,” said Sam Hong, a currency dealer at Shinhan Bank in Seoul. “The Korean economy is influenced by the global markets.”
The won declined 0.9 percent to 1,127.60 per dollar as of the 3 p.m. close in Seoul, according to data compiled by Bloomberg. It earlier reached 1,128.55, the weakest level since Feb. 11.
South Korea’s government set up a 24-hour team to monitor the unrest in the Middle East after three workers from one of the nation’s construction companies were injured by rioters in Libya, the Ministry of Land, Transport and Maritime Affairs said in a statement yesterday.
Benchmark five-year bonds rose. The yield on the 4 percent note due September 2015 slid eight basis points to 4.33 percent, the biggest daily decline this year, according to Korea Stock Exchange. A basis point is 0.01 percentage point.
Source: http://www.bloomberg.com
Foreign investors sold more Korean stocks than they bought for the first time in four days as security forces in Libya, holder of Africa’s largest oil reserves, attacked anti- government protesters following ousters of leaders in Tunisia and Egypt. The Kospi index of shares sank to a two-month low as crude oil climbed to the highest level since September 2008. Stock prices of builders slumped the most since 2009, led by Hyundai Engineering & Construction Co., on concern orders will fall as Korean construction sites were attacked in Libya.
“The political situation in the Middle East is one of the reasons driving the won lower as it could affect the global economic recovery,” said Sam Hong, a currency dealer at Shinhan Bank in Seoul. “The Korean economy is influenced by the global markets.”
The won declined 0.9 percent to 1,127.60 per dollar as of the 3 p.m. close in Seoul, according to data compiled by Bloomberg. It earlier reached 1,128.55, the weakest level since Feb. 11.
South Korea’s government set up a 24-hour team to monitor the unrest in the Middle East after three workers from one of the nation’s construction companies were injured by rioters in Libya, the Ministry of Land, Transport and Maritime Affairs said in a statement yesterday.
Benchmark five-year bonds rose. The yield on the 4 percent note due September 2015 slid eight basis points to 4.33 percent, the biggest daily decline this year, according to Korea Stock Exchange. A basis point is 0.01 percentage point.
Source: http://www.bloomberg.com
No comments:
Post a Comment