The KOSPI tumbled to the lowest point of the year during the intra-day trading, which was a fall in four days in a row, due to the aftermath of an increase in the U.S. bond yield. KOSDAQ fell below 900 for the first time in about three months. The ‘interest rate tantrum’ caused by a spike in the bond yield is increasing uncertainties of the global financial market.
The tech-heavy KOSDAQ closed at 2,976.12 on Tuesday, 19.99 points (0.67%) down from the previous day. It fell more than two percent during that day to 2,929.36, the lowest point since January, but somewhat recovered it in the afternoon. The KOSPI has been falling since Thursday, losing 106.87 points for the past four days and hovering below 3,000. The KOSDAQ closed at 896.36, which is the first time it fell below 900 since December 2.
The won-dollar currency rate closed at 1140.3 won, the highest in the past five months, which accelerated the selling trend among foreign investors. They sold stocks worth 648.6 billion won, which was a sell in five consecutive days.
The fall is mainly due to the 10-year U.S. bond yield, which closed at 1.60 percent the previous day. The bond yield increased by 0.67 percentage point this year. The 10-year bond rate in Seoul also increased by 0.006 percentage point to 2.034 percent. It went over the two-percent threshold for the first time in two years.
email@example.com · firstname.lastname@example.org