Kim Jong-il's death sent Asian markets down. AP Photo / Shizuo Kambayashi
Kim Jong-il's death sent Asian markets down. AP Photo / Shizuo Kambayashi

Kim Jong-Il's death roils markets



The death of North Korea's dictator Kim Jong-Il sent Asian stocks into a tailspin, as investors feared the impact of a transition of power in the nuclear-armed country.

Mr Kim died of a heart attack on Saturday, the Korean Central News Agency said in a statement.

Stocks plunged after the news emerged, with stocks across the demilitarised zone in neighbouring South Korea hardest hit. The country's KOSPI Index fell 3.4 per cent to 1,776.93, at one point falling as low as 4.8 per cent, while the won fell 1.5 per cent against the US dollar.

Shares in some of South Korea's biggest companies, including Samsung Electronics, Hynix Semiconductor, and LG Electronics, fell sharply. Meanwhile, stocks in Samyang Foods, a noodle producer, shot up by 14 per cent.

The Hang Seng Index fell 1.6 per cent to 17,983.40, while Japan's Nikkei 225 index lost 1.2 per cent to 8,296.12. In Singapore, the FTSE Straits Times Index fell 1.4 per cent to 2,620.68.

Investors were fearing the impact of geopolitical moves in the Korean peninsula during the coming days, said Chung Yun Sik, chief investment officer for equities at ING Investment Management Korea, which oversees around $16 billion.

"We saw panic selling today amid concerns tensions on the Korean peninsula may intensify," he told Bloomberg News.

"If China comes out this time and gives supporting comments for Kim Jong Un as successor, I think South Korean financial markets will quickly stabilise."

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

Brief scores:

Manchester City 3

Bernardo Silva 16', Sterling 57', Gundogan 79'

Bournemouth 1

Wilson 44'

Man of the match: Leroy Sane (Manchester City)

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Tales of Yusuf Tadros

Adel Esmat (translated by Mandy McClure)

Hoopoe

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