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William Pesek

Two Big Winners From China's Big Slowdown

South Korea and Philippines show not all emerging markets are the same.
Not all emerging markets are made the same.

Not all emerging markets are made the same.

Photographer: NOEL CELIS/AFP/Getty Images

How panicked were investors last week about China's stock market plunge? Enough to treat the Korean peninsula, a place that was teetering on the brink of war, as a safe haven. Even as policy makers braced for renewed military confrontation between North and South Korea, the won staged a rally.

That's made South Korean assets one of the few bright spots in a dark time for emerging markets. On Aug. 24 alone, investors yanked $2.7 trillion out of developing nations, with Indonesia, Malaysia and Thailand especially hard hit. It matched the violent September 2008 selloff after Lehman Brothers collapsed.