South Korean stocks snap losing streak on talks of Fed pause; won steady

07 Dec, 2018

** At 0630 GMT, the KOSPI closed up 7.09 points or 0.34 percent at 2,075.78. The main index shed earlier gains to dive 1 percent for the week.

** Wall Street Journal reported Fed officials are considering whether to strike a wait-and-see attitude after a likely rate increase at their meeting in December.

** The Wall Street snapped losses in expectations of retreat of Fed's monetary policy, Lee Kyoung-min, an analyst at Daishin Securities, said in a note, noting that KOSPI rally on Friday was led by foreigners buying.

** Chinese commerce ministry hailed the Trump-Xi summit on Thursday, saying it's very confident in reaching an agreement with the United States in 90 days. In response, U.S. President Donald Trump echoed the statement on his twitter.

** However, there was no escaping concerns over Sino-U.S. relations after the arrest of smartphone maker Huawei Technologies Co Ltd Chief Financial Officer Meng Wanzhou threatened to chill talks on some form of trade truce.

** The won was quoted at 1,119.8 per dollar on the onshore settlement platform, 0.04 percent firmer than its previous close at 1,120.3. The currency added 0.1 percent for a week.

** In offshore trading, the won was quoted at 1,119.5 per U.S. dollar, down 0.16 percent from the previous day, while in one-year non-deliverable forwards it was being transacted at 1,099.95 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan  was up 0.34 percent, after U.S. stocks ended the previous session with mild losses. Japanese stocks  rose 0.82 percent.

** The KOSPI is down around 16.2 percent so far this year, and down by 0.26 percent in the previous 30 days.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 percent and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session on the KOSPI index  was 362,788,000 shares and, of the total traded issues of 896, the number of advancing shares was 454.

** Foreigners were net buyers of 11,034 million won worth of shares.   ** The U.S dollar rose 4.98 percent against the won this year. The won's high for the year is 1,053.55 per dollar on April 2 and low is 1,146.26 on Oct. 11.

** In money and debt markets, December futures on three-year treasury bonds rose 0.02 points to 109.2.

** The Korean 3-month Certificate of Deposit benchmark rate was quoted at 1.9 percent, while the benchmark 3-year Korean treasury bond yielded 1.832 percent, lower than the previous day's 1.84 percent.

Copyright Reuters, 2018

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