Stock Prices Soar 26 Points with Outbreak of War

As the beginning of the U.S-Iraq war resolved one of the major uncertainties in the international arena, stock prices, foreign exchange rates and bonds showed positive signs. The Korea Composite Stock Price Index (KOSPI) rose 26.68 points or 4.92% to close at 568.46. The KOSPI index soared over 560 as the index increased by 53.22 points or 10.3% for three consecutive days. The tech-heavy Kosdaq index also rose 2.37 points or 6.45% to close at 39.14. The index skyrocketed by 4.5 points or 13.0% for three days. The combined turnover of the two markets stood at 4.0748 trillion won, first to stand at more than 4 trillion won in 70 days.

The won-dollar exchange rate dropped by 10.80 won to close at 1246.00 won in the Seoul foreign exchange market. The yield on three-year Treasury Bonds edged down 0.04 percentage points to 4.82% on the bond market.

Japan`s Nikkei index also rose 144.01 yen or 1.79% to close at 8195.05 yen. The Asian stock indices showed a synchronized rise with a 1.86% increase in Taiwan`s index.

Chan-Sun Hong hcs@donga.com