Investors fret about political tensions
	International Perspective – June 3, 2002
	Anne D. Picker, International Economist, Econoday

Last Weeks Highlights

Investors felt the pressures of political events and terrorist threats around the world. Equities — and for that matter all markets — don’t ever like uncertainty and now is no exception. Even the safe-haven status of the United States has been threatened by vague terrorist rumblings. All equities indexes followed here fell on the week, as did the U.S. dollar. The equities decline sent investors scurrying to what is thought to be the ultimate safe haven — gold.

It was a miserable week for equities as all the indexes followed here sank on continued political concerns, especially as the bitter dispute between India and Pakistan over Kashmir threatened to escalate into full-fledged war. With two-thirds of the second quarter completed, only the Nikkei, Topix and Hang Seng are up from their March 31 levels. Several indexes besides the Nikkei and Topix are up on the year — The South Korean Kospi, Singapore Straits, and the Mexican Bolsa.