time now for an in-depth look at the market news this afternoon and for that i'm joined on the line
by dr seung soo young professor of business at chung university professor song good afternoon
thanks for coming on yeah good afternoon to you kevin yeah well stocks on wall street up again
overnight continuing from the big rise the day before the biggest rise in several months in fact
tech shares leading the way with a gain of more than one and a half percent on the nasdaq which
is now at its highest level since early june what's behind this new rally in global stocks
yeah the global stock actually the dow jones and s p 400 and nasa composite even the japanese nikkei
225 has shown the positive uh positive increase of the percentage rate however
clearly the overall trend is because it has been increased too much particularly in u.s economy
and also that is reflected in the very strong u.s dollars so they today in the since uh july
uh the there is a little bit uh increase of the stock market but overall stock market is
only u.s market is uh remains quite strong but the overall trend even in uk 500 and has shown
declining and also combined with some crude oil future price has been dropped so i guess currently
uh the trend is we have to wait and see but the overall trend is a little bit declining because
of the russia ukraine war and the expectation to be those issues to be resolved and then
also supply disruption is resolved sooner or later that is reflected in the current
response and the uprise of the u.s stock market right and watching central banks the fed in
particular up through september seems to be a key time frame well korean stocks are up today
too foreign investors buying again more than we've seen them do in a while at the cost be
back at 2 400 points the cosdaq up for a fourth session in a row what's the story in the domestic
market yeah in the domestic market particularly because of the strong dollar and the varied the
korean stock market has be became has become very cheap relative to its economic performance
and relatively a little bit lower inflation rate than the u.s or some european countries
so that is reflective then it means that uh stock uh stocks in korean stock us are very
uh valuable buy that's why i think the foreigners come to the korean market and begin to purchase
on the other hand then the because of the concern about the declining economic growth rate and then
the u.s economy and the particular european economy has turned out to be very weak
therefore there are there is uh the current interest rate hike and cannot be sustained
for a long time another fiscal expansionary policy may be needed and then the financial market expect
to that regards then the not only in the u.s stock market and in the korean market they have shown
the resilience and then that's why the foreign investors they would like to come into some
these asian east asian market and in the u.s market that's i uh my i believe that's why
they uh come to the korean market and uh japanese market right valuations are extraordinarily low in
korea um speaking of asian markets the asian development bank has raised its forecast for
inflation in korea this year to 4.5 percent lowered its growth forecast to 2.6 uh food and
fuel prices that still the main reason for the higher inflation uh though in asian economies
inflation is lower than in other countries what do you make of these projections professor
yeah this uh particularly in the asian market uh of interest lies in the that the distance
determines the relative performance of the economy and the inflation rate
the close to the ukraine and russia such as kazakhstan and those countries in the caucasian
areas central asia they have suffered so much from some high inflation and also some relatively uh
intermediate level of the gross rate but in in east asia particularly china has
it has been the forecast has been the economic growth rate has been
became half it was a 2021 it has recorded 8.1 percentage of gdp growth rate whereas on july
the supplementary uh asia development outlook forecast for four percentage point of growth rate
whereas the inflation remains quite low for china and hong kong so in korea is
of course the inflation rate is forecast to be 4.5 percent of of the year but still we have our
economic growth rate for korea is just 2.6 percent so that means uh relatively weak in terms of real
gross rate gdp growth it is going to be a negative so what what it means that it implies that
korean market has suffered so much from the some losing export market and some declining
performance of china economy that has played a very important crucial role to determine
some economic performance relatively taipei china has shown relatively 3.8 percent
and uh a little bit higher uh gross rate but uh i don't know i'm not sure why taipei china has been
focused to have maintained a higher level of the economic growth rate than korea is maybe uh china
taipei china maintained their trade relationship with the continent china so that's why rather but
korea may suffer so much from the losing as long as we maintained some political stance together
with united states and some australia and the quad then we have to pay the price that's why i
i believe the adb has focused the lower economic growth rate uh so relatively in
asian countries they have shown the inflation is low the reason is one of the reasons maybe some
the particularly the food and food price and the staple food particularly the rice price has been
very stabilized but even though the wheat and corn has been increased so much so in asian
market relative the consumption of wheat and corn is relatively smaller than rice i think that is
another aspect of the some moderate inflation than european countries and also the oil price
the brands futures and western texas intermediate futures has been lower has been hovering hovered
around lower than one hundred dollars per barrel so that is the favor of at least favorable to uh
the uh to the inflation in terms of in light of inflation it has not it has not driven drive that
drive the price too high in asian countries that's why i think that relatively asian economy has
has uh has been in the range of terms of moderate inflation than other countries
well that's an interesting point you make about food costs and inflation and of course much does
depend on china for the growth figures we'll have to see how that plays out professor we'll have to
leave it there for today thank you as always for coming on i really appreciate it yeah thank you