The Shock of Concurrent Collapse of World Stock Market

As US stock value drops with the 1st anniversary of 9.11 Terror just a few days away, In Korea, Japan, Europe, etc, stock values drop as well like domino effects.

At 4th, KCSI closed at 723.05 dropped 17.54 (2.37%) points from the previous day. Kosdaq closed at 58.10, dropped by 0.91 (1.54%).

As being affected by the decline of world stocks, the net sale by foreign investors was 71.1 billion won at the floor, 258.5 billion won of KOSPI 200 Future and led the decline of stock value.

At the same day, Japanese Nikkei average stock value closed at 9,075.09 yen by dropping 141.95 yen (1.54%) and recorded the lowest level for last 19 years. Nikkei average stock value dropped below 9,000 yen once. It was the first time since 12th of August of 1983. Taiwan stock exchange closed at 4,534.15 by dropping 53.91 points (1.18%).

All of the droppings were the results of the decline of Nasdaq closing at 1,263.84 by dropping 51.01 points (3.88%) in the early of the morning in New York and 1,300 points collapsed again. Daw Johns Index also closed at 1,263.84 by dropping 355.45 points (4.10%) which was the second biggest fall in this year. British FT Index dropped by 3.64%, and German DAX index dropped by 5.83% as well.

At the previous day, ISM forecasted that August manufacturing index was less than expected of 51.8, so US economy would be fall in double deep (fall in stagnation after short-term economic recovery). The forecast and contraction of investment confidence with the 1st anniversary of 9.11 Terror before on led the decline of stock value.

Chan-Sun Hong Young-Ee Lee hcs@donga.com yes202@donga.com