uploads///Korean ETFs and ADRs

Bank of Korea Monetary Policy Is Expected to Remain Stable


Jan. 7 2016, Updated 4:00 p.m. ET

Bank of Korea’s monetary policy

The Bank of Korea maintained its interest rates at record lows of 1.5% in its December meeting. Even as exports continue to decline, the central bank felt the eased policy stance would assist economic growth momentum. The next meeting is scheduled for January 14, 2016, when the bank will announce its interest rate decision.

An increase in domestic demand and an increase in the GDP (gross domestic product) by 1.3% in the quarter ended September 2015 are expected to reduce pressure on the central bank to further reduce the benchmark rates.

Article continues below advertisement

Response from around the world

NATO’s (North Atlantic Treaty Organization) Secretary General Jens Stoltenberg has condemned North Korea’s bomb test. He called it a clear breach of UN Security Council resolutions. China, an ally of North Korea, also condemned the reported test and urged the country to refrain from increasing tensions in the Korean peninsula.

A South Korean spy agency has stated that the seismic waves produced by the explosion were lower than normal, thus raising questions about whether it was indeed a hydrogen bomb test.

Impact on the market

Looking at ETFs for January 6, 2016, the Deutsche X-trackers MSCI South Korea Hedged Equity (DBKO) fell 1.4%, tracking the Korean won. The iShares MSCI All Country Asia ex Japan ETF (AAXJ) was trading negative by 1.6%.

South Korean ADRs (American depositary receipts) were trading on a negative note. Shinhan Financial Group (SHG) fell 0.71%, while Woori Bank (WF) fell 0.51%. POSCO (PKX) ended on a lower note at 1.9%.


More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.