[Photo by Yoo Dae-gil = dbeorlf123@]
South Korean shares slid further Friday after they suffered its biggest fall in more than 3-1/2 years in the previous day, battered by a global selloff of riskier assets and concerns over geopolitical risks stemmed from North Korea’s long-range rocket launch.
The benchmark KOSPI fell below the psychologically important 1,850 mark in the mid-morning trade as recession fears gripped the world market already under strain from falling oil prices and a slowdown in China and other emerging markets. On Thursday, The index closed down 2.9 percent at 1,861.54 points, after retreating as much as 3.1 percent, its biggest percentage loss since May 2012.
Tensions with North Korea heightened caution further. On Wednesday, South Korea suspended operations at a jointly run factory park just inside North Korea following the North's long-range rocket launch over the weekend, cutting off an important source of revenue for the impoverished The North kicked out all South Koreans from the Kaesong industrial zone Thursday, calling the South's move as "declaration of war".
"The sentiment is dominated by fear. No one wants to be exposed. It will take some before market sentiment will improve,” said Shin Seung-woo, a broker at NH Investment & Securities.
Shares in Japan’s Nikkei fell below the 15,000 mark for the first time in 15 months as the yen soared to a 15-month high. The strengthening yen touched 110.985 to the dollar Thursday, rising almost 10 percent from its six-week low touched on Jan 29, when the Bank of Japan introduced negative interest rates.
The prices of yen, gold and liquid government bonds of favored countries soared as investors rushed to traditional safe-haven assets amid mounting concerns about the health of European banks
On Wall street, the U.S. benchmark S&P 500 fell 1.23 percent to 1,829.08, its lowest close in almost two years and down 10.5 percent for the year.
The FTSEurofirst 300 index of top European shares sank 3.7 percent to its lowest level in 2-1/2 years.
In a worrying sign that Europe's debt problems could reappear, the Portuguese 10-year bond yield surged above four percent for the first time since 2014.
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Gold surged to one-year high of $1,262.90 per ounce Thursday, rising over four percent in its biggest daily percentage gain since September 2013. It last stood at $1,238.1.
U.S. crude futures hit a fresh 13-year low of $26.05 per barrel on a rise in U.S. stockpiles though they managed to pare losses in a volatile trade later in the day. In early Asia, they traded at $27.33.
By Alex Lee
reporter
Park Sae-jin
swatchsjp@ajunews.com
