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Stocks, Won Post Record Rises Thanks to Swap Deal

Posted October. 31, 2008 09:13,   


The Korean financial market saw a record rally yesterday due to the currency swap agreement reached with the United States.

The benchmark stock index KOSPI jumped 115.75 points, or 11.95 percent, to close at 1,084.72, returning to the 1,000 mark after five trading days. The one-day gain was the biggest since 93.20 points on Aug. 20 last year and the largest since a rise of 8.50 percent on June 17, 1998.

The KOSDAQ soared 30.46 points (11.47 percent) to close at 296.05, a record for the tech-heavy market.

Stocks throughout Asia also rallied. Japan’s Nikkei 225 climbed 9.96 percent, Hong Kong’s Hang Seng 12.82 percent, and China’s Shanghai Composite 2.55 percent.

The Korean won also surged to 1,250 against the U.S. dollar, up 177 points from the previous day and the highest single-day gain since Dec. 26, 1997.

The Korea Securities Dealers Association said the yield on the five-year Korean Treasury Bond dropped 0.13 percentage point to close at 4.58 percent. The interest rate on the three-month certificate of deposit remained the same as Wednesday’s close of 6.06 percent.

jefflee@donga.com parky@donga.com