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Like elsewhere in the world, Seoul’s financial markets took a heavy beating yesterday from Britain’s decision to leave the European Union, as panicky investors dumped emerging-market assets in a global flight to |safety.
KOSPI stocks fell 3 per cent, while the local currency shed nearly 2.5 per cent against the US dollar. Government officials swiftly went into an emergency mode, saying they would use “all means possible” to help stabilise the markets.
Despite the panic on the financial markets, some private economists and government officials said the impact on the real economy would not be as severe as it seemed. From a trading perspective, South Korea’s exposure to the UK is not that big, they said. – The Korea Herald

UK result a shock but Indian central bank ‘prepared’
Raghuram Rajan, governor of the Reserve Bank of India, said yesterday that though Britain’s decision to quit the European Union was a shock, the central bank was ready to act when necessary.
“RBI is watching the markets. It is very ready to act where there is disorderly conduct of the markets. And we are prepared to act,” Rajan told CNBC TV18.
The governor said the RBI had prepared for this outcome even though polls had suggested confidence in the “Remain” vote on Brexit.
“In any kind of market volatility, there is opportunity also. Some movement in currency is warranted. We are watching all the markets and prices, though it is not an immediate shock for liquidity in the system,” he said.
Asked if he would reconsider his decision to quit as the RBI chief in September, he said: “I think I can’t answer that question, I don’t want to go into those areas. I don’t think you should ask me that question.” – The Statesman