August 26, 2019 / 7:07 AM / 5 months ago

S.Korean stocks, won slide on trade war fears, safe-haven demand

* KOSPI index tumbles, foreigners sell

* Korean won falls against dollar

* South Korea benchmark bond yields fall across board

* For the midday report, please click

SEOUL, Aug 26 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares closed down more than 1.6% on Monday, in line with broader Asia, as investors stayed on the sidelines due to an escalation in U.S.-China trade war. The won fell, while the benchmark bond yields slipped on safe-haven demand.

** Chinese Vice Premier Liu He on Monday said China is willing to resolve its trade dispute with the United States through “calm” negotiations and resolutely opposes the escalation of the conflict.

** The trade dispute between the world’s two largest economies sharply escalated since Friday, with both sides levelling more tariffs on each other’s exports.

** Seoul’s main stock index KOSPI ended down 31.99 points, or 1.64%, at 1,916.31, falling for the third consecutive session and marking its biggest intraday percentage loss since Aug. 5.

** Foreigners were net sellers of 143.1 billion won ($118.01 million) worth of shares on the main board.

** The won was quoted at 1,217.8 per dollar on the onshore settlement platform, 0.59% lower than its previous close at 1,210.6.

** It fell 1% earlier in the session but slightly recovered soon as the nation’s finance ministry warned against a one-way bet. Chinese yuan also slumped to a fresh 11-year low during the session, prompting worries of further weakening in the currency won.

** But South Korea’s vice finance minister on Monday said the authorities were closely monitoring the Chinese yuan’s movements and that it will take pre-emptive market stabilisation measures as the correlation between the two currencies’ movement has increased.

** In offshore trading, the won was quoted at 1,217.9 per U.S. dollar, down 0.4% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,216.8 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.97%, after U.S. stocks ended its previous session with a big loss. Japanese stocks fell 2.17%.

** The KOSPI has fallen 6.11% so far this year, and/but lost 6.4% 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 in the KOSPI index was 317.49 million shares. Of the total 892 traded issues, only 67 shares advanced.

** The won has lost 8.4% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.16 points to 111.37, while the 3-month Certificate of Deposit rate was quoted at 1.49%.

** The most liquid 3-year Korean treasury bond yield fell by 5.5 basis points to 1.117%, while the benchmark 10-year yield fell by 7.6 basis points to 1.187%. ($1 = 1,212.6600 won) (Reporting by Joori Roh; Editing by Rashmi Aich)

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