* Won edges up; needs stronger momentum for further rise
* KOSPI rebounds after sharp loss in prior session
* Foreign investors set to snap 4-day buying spree
SEOUL, May 11 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
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)