December 14, 2016 / 2:49 AM / 7 months ago

S.Korea stocks, won largely flat ahead of Fed decision

3 Min Read

* KOSPI trade down 0.11 pct after closing at about 6-week
high in previous session
    * Investors await for Fed's outlook on economy to gauge pace
of policy tightening -analyst

    SEOUL, Dec 14 (Reuters) - South Korean shares and the won
 were muted in thin trade early on Wednesday as investors
held back before the U.S. Federal Reserve's rate decision later
in the day.
    The Korea Composite Stock Price Index (KOSPI) was
down 0.16 percent at 2,033.25 points as of 0242 GMT, taking a
breather after closing at about a 7-week high on Tuesday. 
    The South Korean won was quoted at 1,167.5 against
the dollar, down 0.04 percent from its previous close of 1,167.0
    "A hike later in the day is largely priced in, but investors
are still waiting to see the Fed's statement. A slightly more
upbeat tone on the economy could bring the won down this week,
as it could signal a faster pace of monetary tightening," said
Kim Yoon-seo, an analyst at KTB Investment & Securities.
    Domestically, Kim saw the political uncertainties related to
parliament's impeachment of President Park Geun-hye as a risk
that could drag on the won in the weeks leading up to the
Constitutional Court's ruling on the parliament vote.
    The court must decide whether to uphold the impeachment the
parliament voted to approve on December 9, which could make her
the first democratically elected leader of Asia's fourth largest
economy to be removed from office in an influence peddling
scandal. 
    Foreign investors net purchased 49.1 billion Korean won 
($42.14 million) worth of KOSPI shares near mid-session,
buttressing the index. 
    Decliners outnumbered advancers 466 to 313.  
    December futures on three-year treasury bonds rose
0.09 points to 109.57.
    
                       0242 GMT    Prev close
 Dollar/won             1,167.6       1,167.0
 Yen/won                10.1331       10.0972
 *KTB futures            109.57        109.48
 KOSPI                 2,033.25      2,035.98
 * Front-month futures on three-year treasury bonds


($1 = 1,165.2900 won)

 (Reporting by Cynthia Kim; Editing by Eric Meijer)

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