October 14, 2019 / 7:27 AM / a month ago

S.Korean stocks, won rise on U.S.-China trade progress

* KOSPI jumps, foreigners sell

* Korean won gains against USD

* South Korea benchmark bond yields fall

* For the midday report, please click

SEOUL, Oct 14 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares ended over 1% higher on Monday as partial trade deal between the United States and China to end their tariff war lifted risk appetite. The won strengthened, while the benchmark bond yields fell.

** U.S. President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.

** A slide in China’s exports picked up pace in September while imports contracted for a fifth straight month, pointing to further weakness in the economy and underlining the need for more stimulus as the Sino-U.S. trade war drags on.

** A Reuters poll of 31 analysts showed that the Bank of Korea will likely cut its policy interest rate this week to support slowing economic growth and weak price pressures.

** The benchmark stock index KOSPI closed up 22.79 points, or 1.11%, to 2,067.40.

** “The biggest factor behind the jump on KOSPI market was the U.S.-China trade deal. Chinese exports were slightly worse than expected but its impact wasn’t big,” said Lee Young-gon, an analyst with Hana Financial Investment. “The sluggish trade data from China could be improved if the trade negotiation sees further progress. So, the trade talks going forward seem more important,” Lee added.

** Shares of Samsung Electronics gained 1.7% to their highest level since June 2018, as demand from China was seen growing with signs of a resolution to the Sino-U.S. trade conflict.

** Woongjin and Woongjin Thinkbig soared, as a gaming firm Netmarble was selected as a preferred bidder to buy a stake in their water purification unit, Woongjin Coway.

** Shares of SM Entertainment, the country’s biggest talent management firm in K-pop industry, also jumped on news that its boy band SuperM debuts at No.1 on the Billboard 200 albums chart.

** The nation’s top carrier Korean Air Lines and its budget affiliate Jin Air rallied as a planned visit by South Korean Prime Minister to Japan raised hopes of a thaw in South Korea’s relations with Japan.

** Foreigners were net buyers of 22.3 billion won worth of shares on the main board.

** The won was quoted at 1,184.9 per dollar on the onshore settlement platform, 0.33% higher than its previous close at 1,188.8.

** In offshore trading, the won was quoted at 1,184.4 per U.S. dollar, down 0.2% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,183.4 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.88%, after U.S. stocks firmed more than 1% on Friday. Japanese stocks were closed for national holiday.

** The KOSPI has risen 1.29% so far this year, but gained 6.7% in the previous 30 trading sessions.

** The trading volume during the session in the KOSPI index was 502.18 million shares and, of the total traded issues of 888, the number of advancing shares was 668.

** The won has lost 5.8% against the U.S dollar so far this year.

** In money and debt markets, December futures on three-year treasury bonds fell 0.02 points to 110.86, while the 3-month Certificate of Deposit rate was quoted at 1.55%.

** The most liquid 3-year Korean treasury bond yield fell by 0.3 basis points to 1.281%, while the benchmark 10-year yield fell by 0.1 basis points to 1.492%. (Reporting by Joori Roh, Additional reporting by Hayoung Choi; editing by Uttaresh.V)

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