SEOUL: The South Korean won ended down in domestic trade Thursday, in line with the decline of local stocks as weak manufacturing data from China underscored continuing challenges for the global economy.
The local currency was quoted at 1,123.1 against the dollar at the end of onshore trade, compared with 1,114.8 at the end of the Seoul session Wednesday.
Dealers said the market saw a spike in dollar short-covering following the weak HSBC Flash China purchasing managers' index published earlier on Thursday showed that manufacturing activity in the world's second-largest economy continued to contract in September, reinforcing pessimism about global prospects for the near term.
"Broadly speaking, offshore players were seen unwinding the positions they built following the BOJ news Wednesday," a dealer at a foreign bank said.
The benchmark Korea Composite Stock Price Index ended down 0.9 percent at 1,990.33. Foreigners were net buyers of 161.3 billion won ($144.68 million) worth of local shares on Thursday.
Local bonds rallied amid renewed risk aversion, retracing much of their recent losses. December futures on three-year treasury bonds ended up 0.27 points at 106.15.
Yield on the benchmark five-year treasury bonds fell seven basis points from Wednesday's close, while yield on the three-year treasury bonds fell six basis points.
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