Plunging Markets Defy Government Intervention in Taiwan, Korea
- Stocks, currencies in Korea and Taiwan have slumped this year
- Both introducing short-selling curbs and stabilization funds
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Asia’s two tech-heavy economies South Korea and Taiwan are facing an uphill battle in trying to stem losses in what are already among the world’s worst-performing assets this year. They are hit particularly hard by a global growth slowdown and US chip restrictions.
Authorities are stepping up actions, including introducing curbs on short selling, readying market stabilization funds to buy assets and intervening in currency markets in moves reminiscent of the early days of the pandemic. Korea is resuming corporate-bond purchases as yields surge and default risk spreads.