Asian Markets Steady Despite Tensions on Korean Peninsula

Asian stock markets steadied Wednesday, after an early sell-off caused by tensions in the Korean Peninsula.

The dollar and gold rose as investors sought the safety of lower risk assets.

South Korea ’s KOSPI pared early losses on bargain hunting, after the benchmark index fell as much as 2.4 percent at the open.

Shares of Hana Financial rose over eight percent, after the company’s board approved a proposed stake in Korea Exchange Bank.

Hana says it will pay about $4.1 billion for the controlling stake in KEB.

The Korean won also regained ground, after Tuesday’s 3.5 percent slide against the dollar.

Analysts say the latest incident between the Koreas presents a buying opportunity in South Korea, given attractive valuations for equities, competitive industries and Seoul’s current account surplus.

Tokyo stocks saw a modest sell-off, weighed by a weak euro and higher geopolitical risk. But the Nikkei stayed above the key 10,000 level, and is still hovering near 5-month highs.

Trading in Shanghai was volatile, as financials dragged the Shanghai composite down by over one percent at the open.

Top lender ICBC fell by the 10 percent limit, as it resumed trade after the completion of a $6.8 billion rights issue.

But the benchmark was higher by the lunch break.

In Hong Kong, the Hang Seng snapped a 3-day losing streak, with beaten-down banks and property stocks leading gains.

Foto: NTDTV