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[Breaking News] KOSPI Falls Below 2600 Amid US Credit Rating Downgrade Impact

Korea Economic Daily

Summary

The KOSPI index fell below the 2600 mark during the session due to the impact of the US credit rating downgrade, indicating weakened investor sentiment.
Moody's announced that it downgraded the US credit rating by one notch for the first time in 108 years due to the fiscal deficit.
Moody's assessed that the irresponsible spending by the US government has increased the fiscal deficit, which cannot offset the strengths of the economy and finance.

The KOSPI fell below the 2600 mark during the session. It appears that investor sentiment has weakened due to the news of the US credit rating downgrade.

At 10:18 AM on the 19th, the KOSPI was down 27.33 points (1.04%) from the previous day, standing at 2599.54. It hovered around the 2610 mark early in the session but trended downward, losing the 2600 level.

Recently, the global credit rating agency Moody's downgraded the US credit rating by one notch. It is the first time in 108 years. The reason is the massive fiscal deficit. Moody's stated, "The irresponsible spending by the US government and Congress has increased the fiscal deficit. While we acknowledge the strengths of the US economy and finance, it cannot fully offset the deterioration of fiscal indicators."

Reporter Youngki Jin, Hankyung.com young71@hankyung.com