Taiwan, Korea Stock Drop Prompts Government Buying, Scrutiny
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A stock-market slump that dragged Taiwan and South Korea’s benchmark indexes 20 percent below their highs prompted state-run funds to buy equities and Korean regulators to bolster scrutiny of trading activities. Benchmark indexes narrowed earlier declines.
Taiwan's government bought equities yesterday and this morning through four funds it controls, Philip Yang, a Cabinet spokesman, said. Korea Teachers Pension, the nation’s second-largest public pension fund, said it purchased about 70 billion won ($64 million) of stocks during the recent selloff. South Korea’s Financial Supervisory Service said it will monitor short selling and whether brokerages are following trading rules.