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Fed’s Quantitative Easing to Positively Influence Korean Stock Market

As the US Federal Reserve System (Fed) has decided to stimulate the economy through quantitative easing, many are hoping for the return of foreign investment to the domestic market.

Stock market specialists anticipated that the KOSPI will rise once the US dollar becomes weak.

“A strong U.S. dollar weakened the Korean stock market in the first quarter. Right after the Fed announced its decision, the U.S. dollar became weaker and the Euro became stronger,” a specialist said. “A very strong U.S. dollar must have been a significant concern to the U.S. government,” he added.

According to stock market specialists, the Fed’s decision could lead to monetary inflow to emerging nations. They believed that the KOSPI index will increase in the second quarter if funds flow into emerging countries and foreigners buy domestic stocks.

Stock market specialists said that the chances are low the Fed will revoke quantitative easing in the first half of this year.

Source Text

Source: Yonhap News (Mar. 21, 2013)

** This article was translated from the Korean.

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