Bloomberg Daybreak: Asia Edition South Korea's Martial Law Whirlwind Jolts Markets
Dec 4, 2024
Rory Green, Chief China economist at TS Lombard, and Elfreda Jonker, portfolio manager at Alphinity Investment Management, delve into South Korea's recent political turmoil, including a surprise declaration of martial law. They discuss how this upheaval may lead to increased market volatility, particularly in the semiconductor sector. The duo highlights the implications for investment strategies in the face of geopolitical tensions and shares insights into the broader economic landscape in Asia, urging caution for investors navigating these turbulent waters.
AI Snips
Chapters
Transcript
Episode notes
Korean Market Volatility
- South Korea's surprise martial law declaration and reversal caused market volatility.
- This incident raises concerns about future volatility, especially for the Korean won.
Factors Affecting Korean Won
- The Korean won is expected to be under pressure due to various factors.
- These include the "Trump factor," China trade competition, and domestic economic weakness.
Political Uncertainty in South Korea
- South Korea's political instability could spark further uncertainty, including potential impeachment and new elections.
- Maintaining confidence is crucial for the South Korean economy due to its global importance, especially in semiconductors.