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End of `Obama Effect` Pummels Global Stocks, Korean Won

Posted November. 07, 2008 05:23,   


Global stocks plummeted yesterday on renewed fears over worsening economic conditions. The Korean won also plunged to the 1,300 level against the greenback.

Korea’s benchmark stock index KOSPI dropped 89.28 points or 7.55 percent from Wednesday to close at 1,092.22. The tech-heavy KOSDAQ also plunged 28.89 points or 8.47 percent to close at 311.96.

Stocks throughout Asia also tumbled. Japan’s Nikkei 225 dropped 622.10 points or 6.53 percent to close at 8,899.14, Taiwan’s Taiex plummeted 5.71 percent and China’s Shanghai Composite 2.44 percent.

The falls were caused by the drop in Wall Street Wednesday due to the announcement of gloomy economic data after Barack Obama`s election as U.S. president. The Dow plunged 486.01 points (5.05 percent) to close at 9,139.27, and the tech-dominated Nasdaq dropped 5.53 percent.

European stocks also tumbled. In London, the FTSE 100 index of leading shares dropped 2.35 percent and Germany’s DAX 2.11 percent.

In Korea, the won dropped to 1,330.8 to the greenback, down 64.8 points from Wednesday.