Local stocks beat India, rank 4th in Asia in 2007
Korean stocks have grown the fourth fastest in Asia so far this year, Korea Exchange said yesterday.As of late October, Korea’s main Kospi had advanced 43.9 percent. China leaped 122.6 percent, followed by Hong Kong at 57 percent and Indonesia at 46.4 percent. Coming after Korea were India, Thailand, Malaysia, Singapore and the Philippines. Japan fell 2.8 percent.
According to Korea Exchange, which operates Korea’s stock markets, Asian stock markets started rebounding one month after undergoing a huge correction in the aftermath of the U.S. subprime mortgage crisis in August. In September, the U.S. Fed slashed benchmark interest rates in an emergency measure to clean up the subprime problem.
In the month of October alone, Hong Kong registered a 15.5-percent increase in stock prices, trailed by India at 14.7 percent and Indonesia at 12.1 percent. Korea took the sixth spot in October with 6.1 percent.
With the financial market returning to stability, foreign investors in Asia resumed net purchases in October, especially in the Philippines and Japan. Overseas investors in Korea also largely scaled back sell-offs. They net purchased $226 million worth of stocks in Korea in October. Their cumulative net sales for this year stood at $16.8 billion at the end of last month.
Lim Byung-chul, a researcher with Korea Institute of Finance, said, “Given the lower price-earnings ratios in Korea compared with other stock markets in Asia, it is likely that foreign investors will become net buyers next year.”
By Seo Ji-eun Staff Writer [spring@joongang.co.kr]
with the Korea JoongAng Daily
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