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Korean Government Bonds Decline as Stock Rally Spurs Risk-Taking

South Korean bonds declined as a rally in regional equities damped demand for safer assets, even as Finance Minister Choi Kyung Hwan said the economy needs monetary and fiscal support to revive growth.

The Kospi index of local stocks closed at a nine-month high as overseas investors bought more local shares than they sold for a 13th day, the longest stretch since June 12. The MSCI Asia Pacific Index climbed to a six-year high. Choi said in a televised forum today that, while it’s for the Bank of Korea to set interest rates, he expects the monetary authority will make decisions to counter the economic downturn.