Trump Doubling Down on Rhetoric Rattles South Korean Markets
- Korea’s volatility index jumps, while yen, gold advance
- North Korea risk has become a global risk, Shinhan BNP says
How Tensions Between N. Korea and U.S. Impact Asia
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South Korea’s stocks and currency fell after President Donald Trump warned North Korea that if it “does anything” to the U.S. or its allies “things will happen to them like they never thought possible.”
The Kospi index dropped 1.7 percent at the close of trading in Seoul, rounding off a 3.2 percent decline for the week, the worst since June 2016. The won weakened 1.6 percent against the dollar for the week, the most since March. The Kospi 200 volatility index jumped as much as 27 percent Friday. The cost of insuring five-year South Korean sovereign bonds from nonpayment rose by 5 basis points Friday morning to 69 basis points, according to prices from Nomura Holdings Inc.