Death of Kim Jong Il Results in Fear of Asian Stock Plummet
“The risk or fear that the death of Kim Jong Il will lead to provocation by North Korea is pressuring selling,” as such was claimed by the CEO of Investrust in Tokyo, Hiroyuki Fukunaga. With the death of North Korean leader Kim Jong Il announced on Monday 19th of December, The news had immediately triggered a fall in the Asian stock market, with Korean shares plummeting as much as 5 per cent, and the Korean won dropping 1.8 per cent.
According to the Sydney Morning Herald, the MSCI’s broadest index of Asia Pacific shares which were already down an approximate 1.9 per cent prior to the announcement of Kim Jong Il’s death dropped to a further 2.6 per cent. Experts say the instability of the Asian stock may only be temporary, and concerns of the global economic growth can only be determined through what happens next.
World’s second largest economy, China, does however pledge to a guaranteed growth in the global economy in as early as 2012. The grim growth of the world’s economy owes mainly to the current euro zone debt crisis, and the plummeting of the Asian stock market can be expected to only delay the growth even further, despite the varied issues in the American economy.
As a result, Australians can expect an increase in prices of overseas imports for the upcoming months. Despite not being hit as heavily by the global recession, Australians can now expect saving to be more difficult, especially through term deposits in spite of the recent interest rate cuts. With the suggested Asian stock fall, Euro debt crisis, and introduction of carbon tax in Australia, what are your thoughts towards Australia’s economy in the near future?
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