By now, you’re probably aware that Vietnam and China are locking horns over a Chinese oil rig which Hanoi says constitutes a gross intrusion into the Vietnam’s territorial waters. As tensions heat up with reports of force being used against Vietnamese ships, today, the Vietnam index saw its largest 1 day drop in 13 years, reports Reuters.
According the international news agency, “[Today] around 85 percent of Vietnam equities struggled, leading the index to post its biggest intraday drop since November 2001. The index was down 5.89 percent at 526.96 by the mid-day break after falling earlier to 525.37."
Some experts expect the Vietnam index to bounce back over the next week:
"It is not surprising that the stock market was affected by the conflict... Vietnam equities may suffer from this dispute for about a week," said Trinh Hoai Giang, deputy chief executive officer of Ho Chi Minh City Securities.
China is Vietnam's largest trading partner.
Head over to Reuters for more details.
[Photo via Solarfeeds]
