Korean Shares Look for Support After Recent Turmoil

The Korean Kospi index trades at support after the recent political turmoil. 

KOSPI – Daily Chart

KOSPI – Daily Chart 

The price has bounced at the 2,388-2,400 level and will need buyers to hold that level. 

Hopes for further Chinese stimulus measures boosted stocks in Asia and traders will hope that the recent bounce can remain in place. 

President Yoon declared martial law last Tuesday in an effort to counter “anti-state forces” among his political opponents, but revoked the measure within hours after an immediate backlash. There have now been demands for Yoon’s impeachment by the country’s legislators. 

South Korea’s Finance Ministry also announced a 40 trillion won ($28.35 billion) market stabilization fund after Yoon’s declaration disrupted markets. The Bank of Korea may buy bonds, with authorities ready to act under contingency plans if necessary. 

Other data showed that South Korea’s economy grew by only 0.1% in the third quarter, unchanged from advance estimates issued earlier. The data comes as the country already faced a sharp depreciation in its assets, including its stocks and currencies. The KOSPI has fallen by nearly 7% this year, while the won has declined about 9% against the US dollar. South Korea had recently celebrated its inclusion into the FTSE Russell’s World Government Bond Index. 

Concerns over a potential spillover from South Korea’s political turmoil has kept sentiment cautious towards broader Asian markets. Two days of losses for US stocks may not help the ability for South Korea to see an immediate recovery in asset prices.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts
ATFX

🌍 Welcome to ATFX!

To provide you with the best trading experience in Iraq, please visit our localized website:

There, you’ll find all products, services, and contact information tailored specifically for you. Thank you for choosing ATFX!

ATFX

Restrictions on Use

Products and Services on this website https://www.atfx.com/en-ae/ are not suitable
in your country. Such information and materials should not be regarded as or
constitute a distribution, an offer, or a solicitation to buy or sell any investments.
Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/