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Korean tension could prompt capital outflow from Asia: CEPD

Korean tension could prompt capital outflow from Asia: CEPD

Taipei, May 27 (CNA) An exodus of international funds from Asia is expected if tension between the south and north on the Korean Peninsula worsens, Council for Economic Planning and Development (CEPD) Minister Christina Liu said Thursday.
It is difficult to predict whether the tension will affect Taiwan, Liu said, adding, however, that there could be a negative impact as the Korean conflict has made the public uneasy.
The harm would certainly exceed the benefit to Taiwan if the confrontation escalates or war erupts on the peninsula, Liu said.
Stock markets around the world have fluctuated significantly since April 15, when North Korea was balmed for sinking a South Korean warship with a torpedo, with the Shanghai Stock Index dropping 17 percent, the Taiex falling 13 percent, and benchmarks in Singapore and South Korea shedding 14 percent and 10 percent, respectively.
Both the Dow Jones Industrial Average and the German Stock Index have shed 10 percent.
The performance of the local stock market reflects widespread uncertainty among investors, according to Liu.
On the other hand, ruling Kuomintang Legislator Hsu Shu-po accused some government officials of making improper comments in saying that if a war breaks out between South Korea and North Korea, it will bring about more adverse effects than advantages for Taiwan.
In response, Vice Premier Sean Chen said it is too early to evaluate the impact of the Korean situation on Taiwan, as it is quite complicated and the government has not gathered enough information about the developments.
(By Lee Ming-chung and Y.L. Kao)




Updated : 2020-12-02 08:17 GMT+08:00