hankyoreh

The U.S. Dow Jones industrial average surpassed 13,000 for the first time on April 25 (local time) and the domestic stock market also achieved a record high on April 26. The South Korean benchmark Kospi index reached 1565.03 once in the morning and then closed at 1553.13, a 7.58 (0.49 percent) increase from the previous day.

On April 25, the Dow Jones index closed at 13089.89, 135.95 (1.1 percent) higher than the previous day. The Dow Jones index displayed an upward trend by posting a record high for 13th time this year. The U.S. media, including the Wall Street Journal reported that thanks to a good performance by large companies and a better-than-expected housing market, the pessimistic outlook that dominated the mood early in the year has eased.

Up to 21 major stock markets around the world, not just those in South Korea and the United States, hit all-time high this month. According to a survey performed by Korea Investment & Securities Co., out of 22 countries which belong to the Morgan Stanley Capital International (MSCI) index for developed markets, nine nations including Norway, Belgium, Singapore, Spain, Australia, Austria, Italy and Canada, posted a record high. Among 22 countries belonging to the MSCI index for emerging markets, 12 nations, including Russia, Brazil, Indonesia and China, set new records. China's benchmark Shanghai Composite index, in particular, rose 17.59 percent this month. India also witnessed a 8.76 percent increase.

Stock experts cite the worldwide high liquidity and diversification of markets into Europe and emerging markets as a driving force behind the trend. The domestic stock market was sluggish compared to the strong worldwide markets last year but is showing a rising trend owing to the bullish international markets. Choi Chang-ho, an analyst of Good Morning Shinhan Securities, said the "net income rise of the U.S. largest 500 companies maintained two-digit figure for the past three and half years and the U.S. firms have made better performance than expectation this year."

"Profits of the worldwide companies have significantly increased, playing as a positive factor," he said.

There is, however, concern that the slowdown in the U.S. housing market and China's strengthening tight-money policy may be a major drag on the stock market. Stephen Roach, chief economist at Morgan Stanley, warned, "If the U.S. domestic consumption is slows down, the world economy will enter a period stagnation and Asia will be hit with a particularly hard blow."

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