Asian stocks continue to plummet down after the South Korean bombing by North Korea. A South Korean island was bombarded and it is the bloodiest assault yet by the dictatorship for more than two decades.
FTSE Asia Pacific index went down 0.4% on Wednesday after a previous 1.1% decrease.
Kospi of South Korea was also going down at a 0.6% rate at noon on Wednesday after sliding down steeply at 2.4% in the morning. The won is 1% down to 1,149.30 against the United States dollar.
Last Tuesday, Japan’s Nikkei 225 went down to 0.8% while Hong Kong’s Hang Seng went up to 0.6% after going down at an astounding 2.7% on Monday.
The incident in the two Korean countries has brought so much anxiety over markets not only in Asia but also globally even after the eurozone debt crisis and the Chinese and American currency wars. Many financial analysts are so much in hot seat right now trying to figure out what will happen in the next few days in the market.
Moody’s and Fitch, one of the many ratings agencies in the world, informed Reuters that South Korea’s credit rating will not be changed nor distorted in any way after the recent events caused by North Korea.
In just 24 hours, there is a change in South Korea’s five year credit – it jumped up to 107 basis points from the previous 86 basis points. This is according to the derivatives brokerage called MF Global.
The South Korean government worked hard and fast so that there will be no immediate adverse effect on the financial markets due to the recent bombing on their island.
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