Markets on Edge in Seoul as Trump Escalates North Korea Warnings
- Government sees limited impact from N. Korea on markets: Kim
- Global funds pull money out from stock markets Wednesday
Trump's 'Fire and Fury' Talk Rattles Global Markets
South Korea’s stocks and currency fell after President Donald Trump said Kim Jong Un’s regime will face a devastating military strike if it continues threatening the U.S., an escalation of geopolitical tension that reverberated through global markets.
The Kospi index dropped 1.1 percent at the close in Seoul, though trading was about 20 percent lower than the 30-day average. The won weakened 0.9 percent against the dollar and the yield on the benchmark 10-year government bond rose to the highest since it was issued in March. The Kospi 200 volatility index jumped as much as 30 percent, while the cost of insuring five-year sovereign bonds from nonpayment rose to 60.75 basis points, set for the highest close in about a month, according to pricing at Nomura Holdings Inc.