';
Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks drop amid trade jitters, markets brace for Fed rate cut

* KOSPI index falls over 1%, foreigners net sellers * Korean won strengthens versus U.S. dollar * South Korea benchmark bond yield falls SEOUL, July 29 (Reuters) – Round-up of South Korean financial markets: South Korean shares shed 1.5% on Monday, as investors wore a cautious stance ahead of a likely interest rate cut by the Federal Reserve, while expectations were low for headway in a Sino-U.S. trade dispute as negotiators were set to meet this week. The Korean won rose, while the benchmark bond yield fell. ** As of 0200 GMT, the Seoul stock market’s main KOSPI was down 31.36 points or 1.52% at 2,034.90 points. ** The U.S. Fed is broadly expected to cut its benchmark rate by a quarter point at its July 30-31 meeting. ** Meanwhile, U.S. and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough. ** U.S. President Donald Trump put pressure on the World Trade Organization on Friday to change how it designates developing countries, singling out China for unfairly getting preferential treatment. ** The Fed will cut the rates, but uncertainties after the cut remain high, said Seo Sang-young, an analyst from Kiwoom Securities. South Korea’s chipmakers are dropping as investors locked in profits, he added. ** Shares of Samsung Electronics and SK Hynix dived 1.9% and 2.6%, respectively. So far this month, SK Hynix shares were up 11.80%, compared with a 4.39% drop in the broader market . ** Foreigners were net sellers of 36.4 billion won ($30.82 million) worth of shares on the main board. ** The won was quoted at 1,181.6 per dollar on the onshore settlement platform , 0.27% higher than its previous close at 1,184.8. ** In offshore trading, the won was quoted at 1,180.7 per U.S. dollar, up 0.2% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,178.9 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.13%, after U.S. stocks jumped. Japanese stocks dropped 0.44%. ** The KOSPI down 0.21% so far this year, but lost 1.4% 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 238.65 million shares and, of the total traded issues of 891, the number of advancing shares was 77. ** The won lost 5.6% against the U.S dollar so far this year. ** In money and debt markets, September futures on three-year treasury bonds dipped 0.01 points to 110.82, while the 3-month Certificate of Deposit rate was quoted at 1.53%. ** The most liquid 3-year Korean treasury bond yield fell by 0.4 basis points to 1.304%, while the benchmark 10-year yield dropped by 1.1 basis points to 1.413%. ($1 = 1,181.0000 won) (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.