February 6, 2017 / 2:54 AM / 7 months ago

S.Korea won rises to 3-month high, stocks edge up

* Won highest since U.S. presidential election
    * Won could suddenly plunge from other risks - analyst
    * KOSPI slightly firmer; bank shares rise

    SEOUL, Feb 6 (Reuters) - The South Korean won raced
to a near three-month high early on Monday, as the dollar sagged
after U.S. employment data disappointed, with wages barely
rising despite strong job growth. 
    The won was quoted at 1,137.7 against the dollar
as of 0247 GMT, up 0.9 percent from Friday's close of 1,147.6.
It was the strongest level since Nov. 9, 2016, when Donald Trump
won the U.S. presidential election in a stunning victory.
    The dollar pulled back on expectations the Federal Reserve
will likely refrain from raising interest rates next month, and
also on a lack of progress over expected U.S. fiscal stimulus.  
    Kim Doo-un, a foreign exchange analyst at Hana Futures, said
market players seemed to be focusing more on details such as
wages from the U.S. economic data, which barely notched a rise
in January, but warned about the won's volatile trend.
    "The won could possibly show a sudden drop in the near term
as there still remain many risks from political issues at home,
the Federal Reserve's pending rate hikes, and also Trump's
future fiscal policies. The currency's movement is likely to
remain volatile until as late as April," Kim added. 
    South Korean shares also strengthened and the Korea
Composite Stock Price Index (KOSPI) was up 0.3 percent
at 2,078.64 points.
    Offshore investors were poised to be sellers, offloading a
net 32.7 billion won ($28.74 million) worth of KOSPI shares near
mid-session. 
    South Korean bank shares were buoyed on news that Trump
issued an order on bank financial regulations in the United
States last week.
    KB Financial Group Inc rose as much as 2.3
percent and Hana Financial Group Inc 2.4 percent,
both touching their highest in 52 weeks.
    Advancers outnumbered decliners 455 to 343. 
    March futures on three-year treasury bonds gained
0.09 point to 109.50. 
    
                       0247 GMT    Prev close
 Dollar/won             1,137.7       1,147.6
 Yen/won             10.1156/10       10.1233
 *KTB futures            109.50        109.41
 KOSPI                 2,078.64      2,073.16
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Jacqueline Wong)

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