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Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks gain as global stimulus hopes boost riskier assets

* KOSPI index rises, foreigners net sellers * Korean won strengthens versus U.S. dollar * South Korea benchmark bond yield falls Seoul, Aug 21 (Reuters) – Round-up of South Korean financial markets: South Korean shares rose on Wednesday as prospects of more economic stimulus tempered global recession fears amid signs of a drop in foreign selling. The Korean won strengthened, while the benchmark bond yield fell. ** As of 0311 GMT, the Seoul stock market’s main KOSPI was up 4.54 points or 0.23% at 1,964.79 points. ** Investors welcomed signs that more monetary stimulus was on its way, hoping it would help stave off signs of an economic downturn. ** Foreign net selling has led South Korean stocks to drop sharply since late-July. “However, it has now begun to ease,” says Han Ji-young, analyst, Cape Investment & Securities ** Foreigners were net sellers of 26 billion won worth of shares on the main board. ** U.S. President Donald Trump said on Tuesday his administration was considering potential tax cuts on wages as well as profit from asset sales, and sought to play down market anxieties that the world’s top economy could be heading for a recession. ** Shares of Hyosung Advanced Materials Corp jump as much as 19.7% after the South Korean industrial material producer announced an investment plan of 680 billion won ($562.42 million) to expand carbon fibre production capacity amid a trade conflict with Japan. ** The won was quoted at 1,204.2 per dollar on the onshore settlement platform , 0.34% higher than its previous close at 1,208.3. ** In offshore trading, the won was quoted at 1,202.5 per U.S. dollar, up 0.2% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,201.5 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.04%, after U.S. stocks dropped. Japanese stocks dipped 0.33%. ** The KOSPI dropped 3.55% so far this year, and lost 5% 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 188.53 million shares and, of the total traded issues of 891, the number of advancing shares was 494. ** The won lost 7.3% against the U.S dollar so far this year. ** The most liquid 3-year Korean treasury bond yield fell by 0.3 basis points to 1.098%, while the benchmark 10-year yield dipped by 0.5 basis points to 1.193%. (Reporting by Yuna Park, Editing by Sherry Jacob-Phillips)


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