South Korean stocks, won fall on concerns over global growth, trade

10 Dec, 2018

** South Korea's KOSPI stock index and the won fell on Monday, weighed down by global growth concerns as well as fears over trade tensions between Washington and Beijing. South Korean bond yields also dropped.

** U.S. jobs growth slowed in November and monthly wages rose less than forecast, suggesting some moderation in economic activity that could support expectations of fewer interest rate increases from the Federal Reserve in 2019.

** The Japanese economy contracted the most in over four years in the third quarter as companies slashed spending, threatening to chill the investment outlook in 2019 as the export-reliant nation grapples with slowing global growth and trade frictions.

** Worries over the U.S.-China trade dispute were reignited by news last week that Canadian officials had arrested the chief financial officer of Chinese smartphone maker Huawei for extradition to the United States. The arrest could throw up another hurdle to the resolution of a trade war between the world's top two economies.

** Hackers behind a massive breach at hotel group Marriott International Inc left clues suggesting they were working for a Chinese government intelligence gathering operation, according to sources familiar with the matter. FBI spokesperson said on Friday that the agency was looking into the attack, but declined to elaborate.

** At 06:32 GMT, the KOSPI closed down 21.99 points or 1.06 percent at 2,053.77. Shares of Samsung Electronics fell 1.8 percent, hitting its lowest close since March 2017.

** Shares of South Korean mobile games makers dropped after a report that Chinese regulators have set up a new online games ethics committee and reviewed 20 titles already. Investor sentiment over games industries will likely be dented as the launch of the committee indicates that the Chinese government is aiming to tighten regulations on the industry, said Kim Hak-joon, an analyst at Kiwoom Securities. Shares of Webzen Inc  and WeMade Entertainment Co Ltd closed down 12.8 percent and 9.7 percent, respectively, while Netmarble Corp ended down 6.2 percent.

** The won was quoted at 1,126.5 per dollar on the onshore settlement platform, 0.59 percent weaker than its previous close at 1,119.8.

** In offshore trading, the won was quoted at 1,126.75 per U.S. dollar, down 0.26 percent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,107.15 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.52 percent, after U.S. stocks ended the previous session with mild losses. Japanese stocks weakened 2.12 percent.

** The KOSPI is down around 15.9 percent so far this year, and down by 2.40 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 335,913,000 shares and, of the total traded issues of 895, the number of advancing shares was 173.

** Foreigners were net sellers of 270,876 million won worth of shares.

** The U.S. dollar has risen 5.66 percent against the won this year. The won's high for the year is 1,053.55 per dollar on April 2, 2018 and low is 1,146.26 on Oct. 11, 2018.

** 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 1.807 percent, lower than the previous day's 1.81 percent.

Copyright Reuters, 2018
 

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