April 4, 2017 / 3:24 AM / in 4 months

S.Korea won slips on risk-off sentiment, stocks flat

3 Min Read

    * Trump's policy moves, meeting with Chinese Xi in focus
    * Won to fall if Trump, Xi talk of stronger sanctions
against N.Korea -analyst
    * Hyundai, Kia shares slip on news of falling China sales

    SEOUL, April 4 (Reuters) - The South Korean won        edged
down early on Tuesday in a risk-averse mood ahead of the
U.S.-China summit this week, compounded by the bombing of an
underground train in St Petersburg, Russia.              
    Shares of Hyundai Motor dropped 2.6 percent while Kia Motor
lost nearly 1 percent on news Hyundai Motor Co             and
Kia Motors             have slashed vehicle production in China
amid diplomatic tensions and competition from local brands.
            
    Market participants were focused on the meeting between U.S.
President Donald Trump and Chinese President Xi Jinping later
this week. Any mention of their strategies on North Korea could
affect South Korean markets.             
    The won            stood at 1,117.8 against the dollar as of
0319 GMT, down 0.2 percent versus Monday's close of 1,115.3.
    "What South Korean markets need to know from Trump and Xi's
meeting is whether they made any mention of tangible action
against North Korea's missiles," said Paik Seokhyun, a foreign
exchange analyst at Shinhan Bank.
    Paik said any comments that signal a hard-line policy
against North Korea could raise geopolitical tension and weaken
the won. 
    President Donald Trump held out the possibility on Sunday of
using trade as a lever to secure Chinese cooperation against
North Korea, and suggested Washington might deal with
Pyongyang's nuclear and missile programs on its own if need be.
            
    South Korean shares were flat, with foreign investors set to
be net sellers of local stocks near mid-session, offloading 46.4
billion won ($41.50 million) worth.
    The Korea Composite Stock Price Index (KOSPI)         was
down 0.1 percent at 2,164.46 points.
    Decliners outnumbered advancers 513 to 256.
     June futures on three-year treasury bonds         gained
0.09 point to 109.56. 
    
                       0319 GMT    Prev close
 Dollar/won             1,117.8       1,115.3
 Yen/won             10.1040/30       10.0637
 *KTB futures            109.55        109.49
 KOSPI                 2,164.46      2,167.51
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Eric Meijer)
  

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