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S.Korea stocks slammed by US tech share tumble; Fed meeting awaited
June 12, 2017 / 2:27 AM / 2 months ago

S.Korea stocks slammed by US tech share tumble; Fed meeting awaited

    * Samsung Elec, SK Hynix drop over 2 pct, pressuring overall
market
    * Market waiting for more hints on Fed's future policy moves
-analyst

    SEOUL, June 12 (Reuters) - South Korea's leading electronics
stocks skidded on Monday after a slide in U.S. technology
shares, pulling the benchmark index lower.
    LG Display             tumbled 4.2 percent, while Samsung
Electronics             fell as much as 2.1 percent and SK Hynix
            dropped 2.6 percent.
    The sub-index for electric and electronics         recoiled
nearly 2 percent.
    The Korea Composite Stock Price Index (KOSPI)         was
down 0.8 percent at 2,362.06 points as of 0205 GMT.
    "A big slide in U.S. technology sector is taking a toll on
South Korea's market heavyweight shares like Samsung Electronics
and SK Hynix, putting huge pressure on overall stock markets,"
said Bae Sung-young, a stock analyst at KB Securities.
    U.S. tech shares fell on Friday on worries about the power
of Apple's upcoming iPhones and a cautious Goldman Sachs report
about tech stocks.    
    Offshore investors were poised to be net sellers, offloading
155.7 billion Korean won ($138.38 million) worth of KOSPI shares
near mid-session.
    Bae said investors were also cautious ahead of a U.S.
Federal Reserve policy decision on Wednesday. With an interest
rate hike widely expected, markets are looking for clues on its
plans for further tightening in coming months and how it plans
to reduce its massive balance sheet.
    Decliners far outnumbered advancers 554 to 249.
    The South Korean won        also edged lower due to cautious
trading ahead of U.S. central bank meeting.
    The won            was quoted at 1,125.4 to the dollar, down
0.2 percent compared to Friday's close of 1,123.2.
    June futures on three-year treasury bonds         shed 0.13
point to 109.53 as Bank of Korea's chief said may need to adjust
the pace of monetary policy easing in case of clear signs of
improvement.             
    
                       0205 GMT    Prev close
 Dollar/won             1,125.4       1,123.2
 Yen/won             10.2022/86       10.1852
 *KTB futures            109.53        109.66
 KOSPI                 2,362.06      2,381.69
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Kim Coghill)
  

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