Time to catch breath

The IMF, International Monetary Fund, forecasts simultaneous recessions for Japan, Europe, and North America for the first time since 1945. This might explain why the Asian markets had a very volatile week.For example we can take the KOSPI, the South Korean benchmark. It was swinging 16.1% from its Wednesday high to its Friday low. But at the end of the week it was the region’s second biggest gainer, which was positive.Although up only the very poor 1.9% on the week following recent disastrous declines which is in response to the country's central bank who slashes interest rates for the third time in a month. The central bank is doing this to avoid a big recession.

As we take a look at the whole Asian market, we can see that there has been a very volatile week in every country. So it’s not only South Korea who has suffered from the volatility.

I think that it’s quite normal that there has been such a volatility lately on the Asian market. This is so because of the forcasting of the International Monetary Fund. If the IMF didn’t forcast recessions, there probably wouldn’t be so much volatilities on several, not only the Asian, markets.

source: http://www.atimes.com/atimes/Asian_Economy/JK08Dk01.html