Won Drops After Ruling Party's Surprise Elections Rout
- Bonds fall, with 10-year yield rising most in five weeks
- Asia currencies also drop amid dollar rally as Singapore eases
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The won dropped the most in two weeks after South Korea’s ruling party was routed in parliamentary elections, limiting President Park Geun Hye’s ability to enact reforms as she serves out her final year in office.
Government bonds also fell following the Saenuri Party’s setback, which prompted its Chairman Kim Moo Sung to resign. The opposition picked up votes amid rising youth unemployment, a protracted slide in exports and weak consumer sentiment. The won also declined along with other Asian currencies as the dollar extended Wednesday’s biggest rally in three weeks and Singapore unexpectedly eased monetary policy. The Kospi index tracked emerging-market equities higher.