DPRK nuclear test has limited influence on Korean financial market

Liangmin after North Korea announced a second underground nuclear test, South Korea's financial and international investment banks and rating agencies have "insipid" to say that the news of the negative impact on the Korean financial markets is limited and short-lived. The South Korean financial community seems to be looking at the issue, and analysts say investors have long been accustomed to the North's "show off" of nuclear weapons.　　A local fund manager said that while investors were once frightened and the pessimism spread again, it was not expected that the market would have much to gain in the short term, but the negative impact would not be as big as it used to be. There are also Seoul securities dealers who say that overseas funds are not only less affected, but also see the news as an investment opportunity to buy large sums while the stock market is plunging.　　As of 15:35 local time, foreign capital in the Korean stock market to buy more than 209.4 billion won, for the seventh consecutive trading day to buy super. Hana Daetoo Securities market analyst Kwak Joong-bo, in a British media interview, said that in addition to the South Korean geopolitical risk caused by the market panic, the incident coincided with "market sentiment since March, after the more fragile."　　Data show that since March, the South Korean stock market composite stock index has risen more than 40%, the market has long been expected to have a wave of profit return. On the other hand, international investment banks and rating agencies reacted more calmly to the Korean nuclear incident. Standard Chartered's foreign exchange strategist said the DPRK nuclear test would not have a lasting impact on the Korean market, triggering only a temporary "knee-hop" response. Ratings company S & P also said North Korea's nuclear test did not temporarily affect South Korea's long-term foreign currency credit rating. In 2005, it raised South Korea's foreign currency credit rating by a level to a, and has remained so far. However, Fitch said it had taken the risk of North Korea's nuclear programme into account as a reference factor in measuring South Korea's credit rating.