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S.Korea won, stocks edge up after US Treasury report passes without event
April 17, 2017 / 3:20 AM / 5 months ago

S.Korea won, stocks edge up after US Treasury report passes without event

    * N.Korea's missile launch failure also calms markets
    * Remaining risks could pressure the won for a month or two
-analyst

    SEOUL, April 17 (Reuters) - The South Korean won        and
shares strengthened early on Monday as the semi-annual U.S.
Treasury currency report eased some market concerns, while the
failure of a North Korea missile launch also aided the
sentiment.
    The won            was quoted at 1,137.5 to the dollar as of
0313 GMT, up 0.2 percent compared to the previous close of
1,140.0.
    The Korea Composite Stock Price Index (KOSPI)         was up
0.3 percent at 2,142.29 points.
    The U.S. Treasury currency report released over the weekend
kept South Korea on the monitoring list as it did last October.
            
    North Korea's missile launch failure calmed market worries
over geopolitical risks in the region, providing some support.
            
    The won is set to gain for the day following the currency
report, but its rise would be temporary, said Kim Doo-un, a
foreign exchange analyst at Hana Financial Investment.
    "Risks over a possible North Korean nuclear test still
remain in markets and the presidential election in France will
also trigger safe-haven demand among the investors, pressuring
the won," said Kim.
    France will be holding a two-stage presidential election on
April 23 and May 7. 
    The won's weaker trend is likely to last for a month or two,
Kim added.
    Offshore investors were set to be net sellers for a third
straight session, offloading 44.4 billion Korean won ($39.02
million) worth of KOSPI shares near mid-session.
    The sub-index for major financial groups         rose nearly
2 percent as a South Korean pension fund on Monday accepted a
debt-to-equity swap proposal for bondholders of troubled Daewoo
Shipbuilding & Marine Engineering            .             
    Shares of Amorepacific             rose nearly 5 percent. 
    Advancers outnumbered decliners 567 to 230.
    June futures on three-year treasury bonds         gained
0.04 point to 109.49. 
    
                       0313 GMT    Prev close
 Dollar/won             1,137.5       1,140.0
 Yen/won             10.4974/88       10.4542
 *KTB futures            109.49        109.45
 KOSPI                 2,142.29      2,134.88
 * Front-month futures on three-year treasury bonds 

 (Reporting by Dahee Kim; Editing by Gopakumar Warrier)
  

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