This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-16239822

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Korea shares slide on reports of Kim Jong-il's death S Korea markets slide on reports of Kim Jong-il's death
(40 minutes later)
Korean shares have fallen after North Korea's state media announced the death of the country's leader Kim Jong-il. South Korea's currency and main stock index have dropped after North Korea's state media said the country's leader Kim Jong-il had died.
The benchmark Kospi index fell as much as 4.9% after the news first broke. It was recently trading 3.7% lower. The benchmark Kospi stock index fell as much as 4.9%. The currency, the won, was heading for its biggest daily drop in two months.
The Bank of Korea said it would hold an emergency meeting following the death of Mr Kim. The Bank of Korea will hold an emergency meeting to discuss the death.
Analysts said markets may remain unpredictable in the coming days amid questions about a smooth succession to a new leader. Analysts said market volatility will remain amid questions about North Korea's succession plans.
"The shock on the market will be inevitable in the short term," said Bae Sung-Young from Hyundai Securities. "Judging from the past cases, I forecast the impact to last for two to three days only.""The shock on the market will be inevitable in the short term," said Bae Sung-Young from Hyundai Securities. "Judging from the past cases, I forecast the impact to last for two to three days only."
However, the analyst said that market volatility may last longer this time as the death came when the succession process still looks incomplete.However, the analyst said that market volatility may last longer this time as the death came when the succession process still looks incomplete.
Power struggle
In September 2010, Mr Kim introduced his third son Kim Jong-un as his successor.In September 2010, Mr Kim introduced his third son Kim Jong-un as his successor.
Analysts said that there may now be a power struggle, which could lead investors to avoid risky markets.
"We see more people trying to be a bit more cautious," said Roger Tan of SIAS Research in Singapore.
"Now there is a question mark over who's going to take over the helm, and the markets are worried that there may be some instability, a fight for power over his position."
The South Korean won lost about 1.8% as news of Mr Kim's death spread, while the price of the country's bonds also dropped.
Other Asian markets were also down on the news. Japan's main Nikkei 225 stock index lost 0.8%. Hong Kong's Hang Seng slipped 2% and the Shanghai Composite Index dropped 2%.
"This is definitely a negative factor for markets with no detailed information on his death," said June Park at Meritz Securities in Seoul.
"It will drive the stock markets lower as geopolitical risks are rising and foreign investors could withdraw money out of South Korea."