South Korea’s KOSPI drops
South Korea’s KOSPI, which gained yesterday, retreated today. The index lost 1.25% to close at 2,023.32. Today’s loss pushed KOSPI into the red in 2019 so far as the trade war uncertainty continued to haunt South Korean equities.
Yesterday, the iShares MSCI South Korea Capped ETF (EWY) gained marginally. With South Korean equities lower, expect the ETF to also be under pressure today. The South Korean won dropped 0.7% as investors continued to flock to safer assets like the Japanese yen and US Treasuries.
Australia and New Zealand
Australia’s S&P/ASX200 dropped 0.69% today to close at 6,440. The index fell in early trading on the fear of the trade war expanding to other countries. Thereafter, the index remained steady until the end of trading.
Australia’s ten-year government bond yields dropped below the reserve bank’s cash rate of 1.5%. J.P. Morgan expects four rate cuts in the next year to bring down the rate to 0.5%.
New Zealand’s NZ50 Index dropped 0.27%. New Zealand’s benchmark yields also fell as investors flocked to defensive assets.
The Singapore Straits Times Index remained steady today even as most Asian indexes fell. The iShares MSCI Singapore ETF (EWS) lost 1.16% yesterday.