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| Version 3 | Version 4 |
|---|---|
| S Korea markets slide on reports of Kim Jong-il's death | S Korea markets slide on reports of Kim Jong-il's death |
| (about 4 hours later) | |
| 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. | 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 stock index shed as much as 4.9%, and eventually closed down 3.4%. The currency, the won, fell 1.6% against the dollar. | The benchmark Kospi stock index shed as much as 4.9%, and eventually closed down 3.4%. The currency, the won, fell 1.6% against the dollar. |
| The Bank of Korea will hold an emergency meeting to discuss the death. | The Bank of Korea will hold an emergency meeting to discuss the death. |
| Analysts said market volatility will remain amid questions about North Korea's succession plans. | 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 | 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. | 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. | "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 the helm, and the markets are worried that there may be some instability, a fight for power over his position." | "Now there is a question mark over who's going to take the helm, and the markets are worried that there may be some instability, a fight for power over his position." |
| The South Korean won fell as news of Mr Kim's death spread, while the price of the country's bonds also dropped, pushing up government borrowing costs. | The South Korean won fell as news of Mr Kim's death spread, while the price of the country's bonds also dropped, pushing up government borrowing costs. |
| "The won has been the second-worst performing currency after the Indian rupee since the summer," said Richard Driver at Caxton FX. | |
| "Global risk appetite is likely to remain hemmed in for a long time to come and this renewed regional uncertainly only adds to what was already a negative 2012 outlook for the won." | |
| Other Asian markets were also down on the news. Japan's main Nikkei 225 stock index lost 1.3%, while Hong Kong's Hang Seng slipped 1.2%. | Other Asian markets were also down on the news. Japan's main Nikkei 225 stock index lost 1.3%, while Hong Kong's Hang Seng slipped 1.2%. |
| "This is definitely a negative factor for markets with no detailed information on his death," said June Park at Meritz Securities in Seoul. | "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." | "It will drive the stock markets lower as geopolitical risks are rising and foreign investors could withdraw money out of South Korea." |