Trump's Election Rattles Financial Markets

      November 15, 2016 12:34

      The victory of U.S. president-elect Donald Trump is rattling domestic financial markets as exports and private consumption are showing signs of a deepening slump.

      Global funds are exiting from emerging economies as investors seek safe-haven markets and Korea is feeling the brunt of the force.

      Foreign investors pulled W336.5 billion out of the Korean stock market on Monday and the Korea Composite Stock Price Index fell 0.5 percent (US$1=W1,176).

      So far this month, W1.64 trillion has left the local stock market and the won has been weakening fast.

      The won closed down more than W7 against the dollar on Monday at W1,171.9, the first time since Brexit in late June that it closed below W1,170.

      "We still don't know what will result from Trump's campaign pledges to have Korea pay more to keep U.S. troops here and to renegotiate the free trade agreement," said Prof. Yoon Chang-hyun at the University of Seoul.

      "Also, the leadership vacuum here has heightened uncertainties far more than in other emerging economies" as a massive crony scandal engulfs President Park Geun-hye.

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