Korea $35 Billion Aid Plan Spurs Relief Rally in Stocks, Bonds
- Shares of builders and brokerages are among the beneficiaries
- Move helps sentiment but rate hikes complicate picture: Midas
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South Korean assets rallied on Monday after the government pledged at least 50 trillion won ($34.8 billion) to prop up credit markets, easing concerns about rising default risks in key sectors including real estate.
The Kospi index advanced as much as 2%, with shares of brokerages and builders such as Kiwoom Securities Co., Meritz Securities Co. and Dongbu Corp. notching up gains. Government bonds rose across the curve while the won jumped as much as 0.8% against the dollar before paring its rise.