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S.Korea won strengthens on expansionary policy hopes, stocks rebound
May 11, 2017 / 3:00 AM / 4 months ago

S.Korea won strengthens on expansionary policy hopes, stocks rebound

    * Won edges up; needs stronger momentum for further rise
-analyst
    * KOSPI rebounds after sharp loss in prior session
    * Foreign investors set to snap 4-day buying spree

    SEOUL, May 11 (Reuters) - Hopes that expansionary fiscal
policies from the government of newly elected President Moon
Jae-In would boost the economy pushed up the South Korean won
      , while global risk sentiment strengthened on a rise in
oil prices, further  supporting the currency.
    The won            was quoted at 1,128.0 against the dollar
as of 0246 GMT, up 0.7 percent versus Wednesday's close of
1,135.8.
    The risk-on mood also drove a rebound in South Korean shares
after Wednesday's sharp losses, with the Korea Composite Stock
Price Index (KOSPI)         up 0.9 percent at 2,289.74 points.
    Min Gyeong-won, a foreign exchange analyst at NH Futures,
noted market participants' expectations for expansionary fiscal
policy, but added:
    "While the market is betting on stronger won, there has to
be a decisive momentum in the market for the currency to rise
past the 1,130 level and hold on to the new level," Min said. 
    "Market players' wait-and-see approach to the Federal
Reserve's rate movements for the year is holding the dollar,
preventing a firm gain by the won."  
    Offshore investors were set to end a four-day buying spell,
selling a net 16.8 billion Korean won ($14.84 million) worth of
KOSPI shares near mid-session. 
    But LG Electronics             gained over 3 percent, helped
by foreign buying, while shares of Samsung SDI             rose
4.2 percent on tech sector optimism. 
    Advancing issues outnumbered declining ones by 474 to 323.
    June futures on three-year treasury bonds         gained
0.03 point to 109.23.
    
                       0246 GMT    Prev close
 Dollar/won             1,128.0       1,135.8
 Yen/won              9.8708/01        9.8955
 *KTB futures            109.23        109.20
 KOSPI                 2,292.59      2,170.12
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Eric Meijer)
  

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