Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks drop on recession fears, global political woes

* KOSPI index falls, foreigners net sellers * Korean won weakens versus U.S. dollar * South Korea benchmark bond yield drops SEOUL, Aug 13 (Reuters) – Round-up of South Korean financial markets: ** South Korean shares slipped on Tuesday on heightened recession worries as U.S. yield curve flattened significantly, amid persisting trade worries and global political tensions. The Korean won and the benchmark bond yield also declined, as investors flocked to safe haven assets. ** The yield spread between U.S. 2-year and 10-year notes, a closely watched metric, narrowed to 5.3 basis points, the smallest difference since at least 2010, according to Refinitiv data. ** As of 0156 GMT, the Seoul stock market’s main KOSPI fell 16.60 points, or 0.85% to 1,925.69. ** Foreigners were net sellers of 78.5 billion won ($64.43 million) worth of shares on the main board, extending their successive net selling into a 10th session. It would be the longest selling spree since January 2016, if they post net selling until the market closing. ** Shares of E-Mart surged after the retailer announced plan to sell its assets and buy back shares. ** The won was quoted at 1,218.5 per dollar on the onshore settlement platform , 0.19% lower than its previous close at 1,216.2. ** In offshore trading, the won was quoted at 1,218.3 per U.S. dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,217.1 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.57%, after U.S. stocks stumbled . Japanese stocks fell 1.15%. ** The KOSPI has fallen 5.40% so far this year, and lost 8.8% 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 in the KOSPI index was 277.70 million shares and, of the total traded issues of 892, the number of advancing shares was 302. ** The won has lost 8.4% against the U.S dollar so far this year. ** In money and debt markets, September futures on three-year treasury bonds rose 0.08 points to 111.29, while the 3-month Certificate of Deposit rate was quoted at 1.49%. ** The most liquid 3-year Korean treasury bond yield fell by 2.0 basis points to 1.163%, while the benchmark 10-year yield fell by 3.6 basis points to 1.250%. ($1 = 1,218.4000 won) (Reporting by Hayoung Choi; Editing by Rashmi Aich)

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