By coincidence, AsianInvestor magazine had a business trip to Seoul last week, landing the day after North Korea conducted its underground nuclear test. Although it was business as usual throughout South KoreaÆs bustling capital, the inevitable topic of conversation was politics, and the potential impact the crisis could have on investments.
For fund managers, the main question is to what extent political fears could impact the stock markets. Most remain sanguine. One fund executive pointed out that last Monday the Kospi fell by only 2.5%, compared to a 10% drop on September 12, 2001.
A number of fund executives pointed to the marketÆs greater stability, thanks to nearly three years of banks promoting regular...
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