Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks fall nearly 1% as Japan dispute, U.S.-China conflict weigh

* KOSPI index falls, foreigners net buyers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

Seoul, July 17 (Reuters) – Round-up of South Korean financial markets:

** South Korean stocks fell nearly 1% on Wednesday as economic dispute between South Korea and Japan weighed on sentiment, while U.S.-China trade conflict worries piled on. The won weakened and the benchmark bond yield fell.

** The KOSPI fell 18.95 points or 0.91% to 2,072.92.

** Export curbs imposed by Japan in its dispute with South Korea will adversely effect global technology companies and hurt the operations of tech giant Samsung in the Texas state capital of Austin, a South Korean government source said on Wednesday.

** Washington “will do what it can do” to help defuse a political and economic dispute between its allies South Korea and Japan, a top U.S. diplomat responsible for Asia policy said during a visit to Seoul on Wednesday.

** Meanwhile, U.S. President Donald Trump said on Tuesday the United States still has a long way to go to conclude a trade deal with China, but could impose tariffs on an additional $325 billion worth of Chinese goods if it needed to do so.

** South Korean shares got off shaky start by Trump’s negative comment and extended losses due to conflict between South Korea and Japan, said Kim Ji-hyung, analyst at Hanyang Securities. ** Foreigners were net buyers of 33.4 billion won worth of shares on the main board.

** The won was quoted at 1,181.3 per dollar on the onshore settlement platform, 0.31% lower than its previous close at 1,177.6. ** In offshore trading, the won was quoted at 1,179.9 per U.S. dollar, down 0.1% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,180.0 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.29%, after U.S. stocks slipped . Japanese stocks fell 0.31%.

** The KOSPI has risen 1.56% so far this year, and gained 1.2% 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.

** The trading volume during the session on the KOSPI index was 752.12 million shares and, of the total traded issues of 894, the number of advancing shares was 174.

** The won has lost 5.6% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.10 points to 110.60, while the 3-month Certificate of Deposit rate was quoted at 1.75%.

** The most liquid 3-year Korean treasury bond yield fell by 3.2 basis points to 1.399%, while the benchmark 10-year yield fell by 2.8 basis points to 1.546%. (Reporting by Yuna Park, Hayoung Choi; editing by Uttaresh.V)

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