S.Korea stocks drop the most in 11 months after Wall Street swing (2024)

FAQs

S.Korea stocks drop the most in 11 months after Wall Street swing? ›

** South Korean shares logged the biggest daily drop in 11 months on Tuesday after concerns over geopolitical tension in Ukraine and U.S. monetary policy tightening fuelled wild volatility on Wall Street. The Korean won weakened, while the benchmark bond yield rose.

Despite these achievements, the South Korean stock market might be one of the cheapest in the world. We believe that the main reasons for this discount are historically weak corporate governance policies employed by South Korean companies and the inefficient capital allocation by management teams.

Stocks Falling In August 2011, investors lost trillions due to many different variables causing the stock market to fall. There was a debt crisis in Europe, uninspiring economic news, and a bust to U.S. credit rating which caused a fear of double dip recession.

The term stock market crash refers to a sudden and substantial drop in stock prices. Stock market crashes are often the result of several economic factors, including speculation, panic selling, or economic bubbles. They may occur amid the fallout of an economic crisis or major catastrophic event.

A stock market crash is a severe point and percentage drop in a day or two of trading; it is marked by its suddenness. The most recent stock market crash began on March 9, 2020. Other famous stock market crashes were in 1929, 1987, 1997, 2000, 2008, 2015, and 2018.

It may boast world-class companies, a stable democracy and world-class living standards but South Korea is still classed as an emerging market for investors. Plagued by decades of corporate governance issues, the Asian country has been avoided by many foreign investors.

The Republic of Korea (ROK) is an attractive investment destination for foreign investors due to its political stability, public safety, world-class logistics and information and communications technology (ICT) infrastructure, highly-educated and skilled workforce, and dynamic private sector.

It is generally believed that investors return from summer vacation in September ready to lock in gains as well as tax losses before the end of the year. There is also a belief that individual investors liquidate stocks going into September to offset schooling costs for children.

On Monday, Oct. 19, 1987, the Dow Jones Industrial Average plunged almost 22%. Black Monday, as the day is now known, marks the biggest single-day decline in stock market history.

Few would dispute that the crash of 1929 was the worst in history. Not only did it produce the largest stock market decline; it also contributed to the Great Depression, an economic crisis that consumed virtually the entire decade of the 1930s.

Should I pull my money out of the stock market? ›

Key Takeaways. While holding or moving to cash might feel good mentally and help avoid short-term stock market volatility, it is unlikely to be wise over the long term. Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss.

The S&P 500 (. SPX) is up 15.9% in 2023 - a rebound that surprised many analysts after equities' brutal 2022 decline.

Stock Market Performance In 2023

U.S. stock market gains in the first half of 2023 have been rosier than some entire years in the past. This alone raises the risk for a spill in prices. The S&P 500's rise in 2023 reached almost 16% in mid-June.

Key Takeaways. The October effect refers to the psychological anticipation that financial declines and stock market crashes are more likely to occur during this month than any other month. The Bank Panic of 1907, the Stock Market Crash of 1929, and Black Monday 1987 all happened during the month of October.

Speculation about a potential housing market crash has been a hot topic of discussion, and people are eager to know what the future holds. While there are signs of a slowdown in the housing market's year-over-year growth rate, the overall data and forecasts suggest that a crash is unlikely in 2023.

The South Korean won is known to be one of the most volatile currencies in the world. This is due to its reliance on exports, which are vulnerable to changes in the global economy, as well as its high dependence on foreign capital.

A more important factor contributing to South Korea's massive trade deficit this year is the decline in Korean exports. This was mainly caused by a sharp drop in semiconductor-related exports. In January–August 2022, semiconductor exports fell by 49.4 per cent from 2021 to US$36.2 billion.

Risks of investing in South Korea include a heavy reliance on imports and a tense relationship with its neighbor, North Korea. The easiest way to invest in South Korea is by using either ETFs or ADRs, which offer diversified exposure and can be bought on a U.S. stock exchange.

The South Korean currency has been under pressure from deteriorating economic fundamentals, especially due to falling exports.