BENGALURU: South Korean equities extended losses Wednesday amid volatility in chipmakers, with the benchmark dropping more than 20 percent from June’s record close, signalling that the market is in bear territory, while Indonesian stocks tumbled after S&P Dow Jones warned of a possible downgrade to frontier status.
Indonesia’s benchmark equity gauge fell 1.5 percent, snapping a five-day rally, after S&P Dow Jones Indices warned Indonesia risks a downgrade to frontier from emerging status due to market transparency issues.
That is the latest setback for Southeast Asia’s top economy, which has been placed under review by MSCI since January, and ramps up the pressure on authorities to deliver visible reforms that address disclosure and transparency concerns.
In South Korea, the benchmark KOSPI ended 5 percent lower at 7,246.70, its lowest close since May 20, after triggering a “sidecar” trading curb during the session.
The benchmark dropped more than 20 percent from a record close of 9,114.55 on June 22, a threshold commonly considered confirmation that a market is in bearish territory.
In Southeast Asia, Singapore’s FTSE Straits Times scaled yet another record high, with banks: OCBC, DBS , and UOB gaining between 1.7 percent and 5 percent. All three banks touched their record highs during trading.
The US dollar, last down 0.2 percent, edged to its highest level in a week after the US resumed strikes against Iran, as investors sought refuge in the global safe-haven currency.
Comments