Views Article – Sharenet Wealth

Asia, Forex

S.Korean stocks, won gain ahead of rate decision, U.S. data

* KOSPI index rises, foreigners buy

* Korean won climbs against USD

* South Korea benchmark bond yields fall

* For the midday report, please click

SEOUL, July 16 (Reuters) – Round-up of South Korean financial markets:

** South Korea’s KOSPI stock index closed up on Tuesday ahead of U.S. retail sales and industrial output data, and the Bank of Korea’s rate decision during the week. The Korean won ticked up, while the benchmark bond yields fell.

** The Seoul stock market’s main KOSPI ended 9.39 points or 0.45% higher to 2,091.87 points.

** “Investors are taking a wait-and-see stance ahead of second-quarter earnings results and the Bank of Korea’s rate decision on Thursday,” said Lee Kyoung-min, analyst at Daishin Securities.

** While markets await the U.S. data, a weak data could support the Federal Reserve’s rate cut, but if it turns out worse-than-expected, it could spur worries of slowing economy, he added.

** China’s economic growth in the second quarter slowed to its weakest pace in at least 27 years, calling for a further stimulus.

** South Korea’s central bank will likely keep its policy interest rate steady this week but cut rates next month as economic growth falters in Asia’s fourth-largest economy, a Reuters poll showed. A majority – 25 of 36 analysts – project a rate reduction between July and August.

** Foreigners were net buyers of 251.4 billion won worth of shares on the main board.

** The won was quoted at 1,177.6 per dollar on the onshore settlement platform, 0.14% higher than its previous close at 1,179.3.

** In offshore trading, the won was quoted at 1,177.6 per U.S. dollar, up 0.2% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,176.5 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.20%, after U.S. stocks . Japanese stocks fell 0.69%.

** The KOSPI has risen 2.49% so far this year, and/but gained 2.0% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** Trading volume during the session on the KOSPI index was 674.50 million and, of the total traded issues of 894, the number of advancing shares was 380.

** The won has lost 5.3% against the dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds fell 0.01 point to 110.48, while the 3-month Certificate of Deposit rate was quoted at 1.78%.

** The most liquid 3-year Korean treasury bond yield rose by 0.2 basis point to 1.435%, while the benchmark 10-year yield fell by 0.3 basis point to 1.578%. (Reporting by Joori Roh; editing by Gopakumar Warrier)

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