Asian Stock Markets Plunge

With global economic uncertainty rising after the New York stock market collapse, stock prices in Asian countries, including Korea, collapsed yesterday.

The KOSPI index dropped 94 points at one point, closing 66.29 points or 3.36 percent lower than the previous trading day at 1,903.81. The KOSDAQ index also went down 18.03 points or 2.29 percent to close at 768.90.

The Nikkei Average also declined 375.90 yen or 2.24 percent from weekend, while the SSE Composite index went down by 2.59 percent, Taiwan Capitalization Weighted Stock by 2.61 percent, and the Hang Seng index by 3.70 percent.

It was the steepest drop in the KOSPI index since August 16, when it nosedived by 125.91 points or 6.93 percent on concern over the potential credit crunch caused by the U.S. subprime mortgage meltdown.

In the KOSDAQ market, KOSDAQ Star Futures for December lost 6.67 percent, triggering a “side car,” a five-minute suspension of program trading, for the fourth time this year.

Korea’s market capitalization, the combined value of the KOSPI and KOSDAQ markets, fell to 1052.9331 trillion won that day, posting a 35.1284 trillion won drop in a single day.

Experts said, “As stock markets in industrialized countries collapse amid rising oil prices and increasing uncertainties about the global economy, Asian stock markets that are vulnerable to external variables are feeling the impact.”

swon@donga.com sukim@donga.com