Morgan Stanley mulls South Korea, Taiwan index reclassification

[dArKeR]

Morgan Stanley Capital International Inc. said it's considering upgrading the stock markets of some countries including South Korea and Taiwan to developed market status in its global equity benchmarks.

"MSCI has been studying South Korea as it's one of the key markets in the emerging markets," said Toshiaki Matsumae, head of MSCI's Tokyo office. Taiwan is another country under consideration, he said. He declined to say when a decision will be made, adding that MSCI typically makes a public announcement months before it begins any review.

Any such reclassification would likely increase foreign fund flows in the countries as developed markets are seen as safer investments than emerging markets. Taiwan and South Korea, home to Asia's fifth and sixth-largest stock markets, are currently in the MSCI Emerging Markets Index. The two markets account for almost a third of the benchmark's weighting.

http://www.etaiwannews.com/Business/2004/02/07/1076225258.htm