Scheduled for Tuesday actually:
That’s South Korea’s financial regulator announcing a conference call with Chinese and Japanese peers, regarding (if we translate it right) “American and European financial health” and their effects on Asian markets.
The Kospi did tumble 4.4 per cent on Monday and the Nikkei and Shanghai Composite both fell 2 per cent…
Though we can’t think of the last time these three countries have met. China’s inclusion specially leaps out. We’re no doubt making a mountain out of a molehill. On the other hand we would note that all three countries possess large FX “exposure” to Europe (and China and Japan underpin a great deal of demand for eurozone sovereign debt through their FX reserves). The Korean currency crisis of late 2008 is a recent memory too.
News of their co-ordination is, needless to say, interesting.
Related link:
Europe’s banks face unsecured bond test – FT