Go to contents

Coordinated Central Bank Action Lifts Asian Stocks

Posted October. 15, 2008 08:48,   


The announcements by U.S. and European central banks of injecting unlimited dollar funds lifted the Korean and Asian stock markets yesterday.

Korea’s benchmark KOSPI index soared for the second consecutive trading day. The won-dollar exchange rate fell for the fourth straight day to close at 1,208.

The KOSPI surged 79.16 points (6.14 percent) to close at 1,367.69, returning to the 1,300 mark after four trading days. The rise was the biggest since a surge of 7.64 percent on Feb. 14, 2002, and the third-largest leap in KOSPI history.

Shortly after the market opened, investors rushed to buy stocks. The index soared 53.78 points, prompting the use of the sidecar, or a trading suspension of five minutes, both in the KOSPI and the tech-heavy KOSDAQ.

After net selling Korean stocks for the past 10 trading days, foreign investors began buying in droves to the tune of 138.2 billion won in net purchases.

The KOSDAQ rose 28.15 points (7.65 percent) to close at 396.32, the largest growth since rising 7.91 percent on Jan. 22, 2001, and the biggest leap in points since a jump of 48.11 points on Aug. 20 last year.

All Asian stock markets excluding China’s soared, responding to the concerted efforts of central banks worldwide to ease the financial crisis.

Boosted by the joint action and the Japanese government’s announcement of stock market policy, Japan’s benchmark Nikkei 225 index skyrocketed 14.15 percent to close at 9,447.57, recovering the 9,000 mark in one trading day.

Taiwan’s stock market jumped 5.4 percent, Singapore’s 3.89 percent, Vietnam’s 4.75 percent, and Hong Kong’s 3.19 percent.