Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks edge higher; Japan export curbs in focus

* KOSPI index rises slightly, foreigners net sellers * Korean won drops versus U.S. dollar * South Korea benchmark bond yield rises SEOUL, Aug 1 (Reuters) – Round-up of South Korean financial markets: ** South Korean shares rose slightly on Thursday, after opening lower as U.S. Federal Reserve Chairman Jerome Powell ruled out a lengthy easing cycle, while investors awaited further developments in Japan’s export curbs. The won weakened while the benchmark bond yield rose. ** As of 0205 GMT, the Seoul stock market’s main KOSPI index rose 5.75 points, or 0.28%, to 2,030.30. ** Powell, speaking in a news conference after the release of the central bank’s statement, characterised Wednesday’s rate cut as “a mid-cycle adjustment to policy”, a sign to markets that sharp further cuts were not imminent. ** Japan is preparing for cabinet approval as early as Friday to remove South Korea from the so-called white list status with minimum trade restrictions. ** A trade conflict between Seoul and Tokyo turned into a political issue and it’s likely to be prolonged, SK Securities analyst Han Dae-hoon said in a report. If Japan removes South Korea from its trade white list on Friday, investor sentiment would come under pressure, he added. ** South Korea’s exports tumbled for an eighth straight month in July, with persistently weak global demand and an escalating dispute with Japan painting an increasingly gloomy picture for Asia’s fourth-largest economy. ** Shares of SM Entertainment plunged after the country’s biggest talent agency disappointed investors in its response to a shareholder’s open letter. ** Foreigners were net sellers of 26.3 billion won ($22.17 million) worth of shares on the main board. ** The won was quoted at 1,188.7 per dollar on the onshore settlement platform , 0.47% lower than its previous close at 1,183.1. ** In offshore trading, the won was quoted at 1,186.5 per U.S. dollar, up 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,185.3 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.34%, after U.S. stocks dropped . Japanese stocks rose 0.13%. ** The KOSPI has fallen 0.46% so far this year and lost 4.7% 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 199.58 million shares and, of the total traded issues of 888, the number of advancing shares was 450. ** The won has lost 6.1% against the U.S dollar so far this year. ** In money and debt markets, September futures on three-year treasury bonds fell 0.07 points to 110.83, while the 3-month Certificate of Deposit rate was quoted at 1.50%. ** The most liquid 3-year Korean treasury bond yield rose by 1.2 basis points to 1.306%, while the benchmark 10-year yield rose by 0.8 basis point to 1.399%. ($1 = 1,186.2000 won) (Reporting by Hayoung Choi; Editing by Subhranshu Sahu)

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