Korea Vote a Sideshow for Traders Eyeing Trump And the North
- Markets shrugged off South’s last three presidential elections
- Won diverging from equities as investors focus on geopolitics
Why South Korea's Terrible Times Aren't Over Yet
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South Korea’s presidential election should usher in a period of stability for the country’s political scene -- but the same can’t be said for its financial markets.
Korean assets are diverging as investors look beyond the ballot to longer-term concerns -- with the standoff between North Korea and Donald Trump still simmering, and Seoul caught in between. Benchmark bond yields are testing a 15-month high reached in March and the won posted the worst performance among Asian currencies last month. Stocks, however, are benefiting from the reflation trade, with the Kospi index surging to a record.