Won Dives, Kospi Down As Trump, North Korea Standoff Sparks Risk-Off Move

And here we go.

Although it’s still far too soon to draw any conclusions, it’s worth noting that South Korea is under pressure in early trading.

The won just hit a three-week low…

USDKRW2

…after sliding as much as 0.8% on the heels of Trump’s promise to deliver heretofore unseen “fire and fury” on Pyongyang:

KRW

And the Kospi gapped lower right out of the gate:

Kospi

It’s worth noting that the aussie is getting hit too on the broad risk-off move:

AUDUSD

But don’t worry. “North Korea’s response to U.S. President Donald Trump’s comment won’t have much effect on South Korea’s Kospi benchmark, judging by the index’s previous performance amid similar situations,” Kim Yong Goo, equity strategist at Hana Financial Investment, tells Bloomberg by phone, adding that “for investors trading South Korean equities, threats from North Korea are ‘business-as-usual.‘”

Just another day under the mushroom cloud…

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2 thoughts on “Won Dives, Kospi Down As Trump, North Korea Standoff Sparks Risk-Off Move

  1. Well Mr Goo it is not a problem until it is. More complacency is fine until some Duke gets shot or two “goofballs” start playing chicken with an arsenal of death sitting 30 miles away (I wonder what this big RED button does Don Jr., I don’t know dad push it and see). You bet business as usual.

  2. Pingback: Japan Stocks Have Worst Day Since May as Volatility Spikes Most Since 2015 - Biiwii.com

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