May 16, 2019 / 6:58 AM / 2 months ago

S.Korean stocks drop over 1% on foreigners' sell-off; won at 28-month low

* KOSPI index falls, foreign net selling biggest since Oct 2018

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, May 16 (Reuters) - Round-up of South Korean financial markets:

** South Korea’s KOSPI stock index stumbled on Thursday as foreigners sold off local stocks, marking the biggest amount since Oct. 23, 2018, amid mounting tension between the United States and China. The Korean won dropped, brining about government’s warning to counter its further weakness, and the benchmark bond yield also fell. ** The Seoul stock market’s main KOSPI fell 25.10 points, or 1.20%, to 2,067.68.

** The Trump administration hit Chinese telecoms giant Huawei with severe sanctions on Wednesday, adding another incendiary element to the U.S.-China trade dispute just as Treasury Secretary Steven Mnuchin said he would visit China soon for more talks.

** Foreigners were net sellers of 466.7 billion won ($391.97 million) worth of shares on the main board, the largest net sales since Oct. 23 last year.

** The won was quoted at 1,191.5 per dollar on the onshore settlement platform, 0.24% lower than its previous close at 1,188.6, after it hit a fresh 28-month low.

** A senior South Korean finance ministry official told Reuters by phone that “authorities are closely watching the foreign exchange market” which is usually taken by dealers as a warning against one-way bets on the currency. Multiple FX dealers suspected the authorities were selling dollars to curb won’s weakness.

** In offshore trading, the won was quoted at 1,190.2 per U.S. dollar, down 0.4% from the previous day, while in one-year non-deliverable forward trading its one-month contract was quoted at 1,189.3 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.22%, after U.S. stocks closed up . Japanese stocks fell 0.59%.

** The KOSPI has risen 1.31% so far this year, and fell 3.5% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session on the KOSPI index was 731.26 million shares and, of the total traded issues of 894, the number of advancing shares was 297.

** The won has lost 6.4% against the U.S dollar this year.

** In money and debt markets, June futures on three-year treasury bonds rose 0.13 points to 109.69, while the 3-month Certificate of Deposit rate was quoted at 1.84%.

** The most liquid 3-year Korean treasury bond yield fell by 2.7 basis points to 1.683%, while the benchmark 10-year yield fell by 3.9 basis points to 1.826%. ($1 = 1,190.6500 won) (Reporting by Hayoung Choi; editing by Rashmi Aich)

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