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Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks fall as Fed minutes cast doubt on aggressive rate cuts

* KOSPI index falls, foreigners net sellers * Korean won weakens versus U.S. dollar * South Korea benchmark bond yield falls Seoul, Aug 22 (Reuters) – Round-up of South Korean financial markets: ** South Korean shares fell on Thursday as minutes of the Federal Reserve’s July meeting cast doubt on how aggressive U.S. rate cuts will be. The won weakened and the benchmark bond yield fell. ** The Seoul stock market’s main KOSPI fell 5.48 points or 0.28% to 1,959.17. ** Foreigners were net sellers of 32.1 billion won worth of shares on the main board. ** Federal Reserve policymakers were deeply divided over whether to cut interest rates last month but were united in wanting to signal they were not on a preset path to more cuts, a message not likely to sit well with U.S. President Donald Trump. ** South Korean stocks partially recovered from the loss in late July and early August, but the sentiment is still week and foreign net selling is taking place mainly in cyclical sectors, says Kang Jae-hyun, analyst at Hyundai Motor Securities ** The won was quoted at 1,203.4 per dollar on the onshore settlement platform , 0.07% lower than its previous close at 1,202.5. ** In offshore trading, the won was quoted at 1,202.3 per U.S. dollar, down 0.1% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,201.4 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was unchanged, while U.S. stocks rose . Japanese stocks were up 0.12%. ** The KOSPI has fallen 4.01% so far this year, and lost 4.3% 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. ** Trading volume during the session was 218.05 million shares and, of the total traded issues of 889, the number of advancing shares was 308. ** The won has lost 7.3% 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 111.26. ** The most liquid 3-year Korean treasury bond yield fell by 1.7 basis points to 1.137%, while the benchmark 10-year yield fell by 3.3 basis points to 1.244%. (Reporting by Yuna Park; editing by Uttaresh.V)


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