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Seoul shares fall 1 pct on soft exports data and China PMI; won up
September 1, 2015 / 3:19 AM / 2 years ago

Seoul shares fall 1 pct on soft exports data and China PMI; won up

SEOUL, Sept 1 (Reuters) - Seoul shares fell 1 percent on Tuesday morning on concerns over corporate earnings after news South Korea’s exports fell to a six-year low, while a private survey showed China’s manufacturing sector suffering its worst slump in years.

The South Korea Composite Stock Price Index (KOSPI) was down 1 percent at 1,922.14 points from the close at 1,941.49 points. Losers outnumbered gainers by 2.6 to 1.

Preliminary data showed that South Korea’s exports fell for an eighth straight month in August and at the fastest pace since 2009 as an economic slowdown in its biggest trade partner China dissipated foreign demand.

Meanwhile, a private survey published during the session showed activity in in China’s vast factory sector shrank at its fastest pace in almost 6-1/2 years in August.

“Lukewarm local exports data and soft PMI data in China eased expectations that domestic firms’ earnings would be improved, while there’s still uncertainty over the timing of the Fed’s rate hike,” said Kim Young-jun, a stock-analyst at SK Securities.

Semiconductor chipmaker SK Hynix Inc fell 3.7 percent to 34,450 won.

“The PC DRAM fixed price declined 7 percent in August (from July) on persistent falls in demands for PC and laptops,” Lee Se-chul, a tech analyst at NH Investment & Securities said in a note to clients.

Market bellwether Hyundai Motor Co Ltd slipped 1.7 percent.

Foreigners offloaded a modest 4.7 billion won($3.99 million) worth of shares in the main board by midday.

On the currency market, the South Korean won joined most regional peers in strengthening against the dollar.

The won was up 0.3 percent at 1,178.9 per dollar as offshore funds offloaded the greenback and on domestic exporters’ demands for settlement.

“China slightly appreciated the yuan during the session, also effecting a rise in the won,” said Yuna Park, a foreign-exchange analyst at Dongbu Securities.

September futures on three-year treasury bonds unchanged and stood at 109.42.

0243 GMT Prev close Dollar/won 1,178.9 1,182.5 Yen/won 9.7594/694 9.7478 *KTB futures 109.42 109.42 KOSPI 1,922.14 1,941.49 * Front-month futures on three-year treasury bonds (Reporting by Yeawon Choi; Additional reporting by Yena Park)

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