July 1, 2019 / 7:20 AM / 3 months ago

Tech shares dent S.Korean stocks, Japan's export curbs hurt

* KOSPI index little changed, foreigners net buyers

* Electric sub-index ends 0.6% lower

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

SEOUL, July 1 (Reuters) - Round-up of South Korean financial markets: South Korean stocks ended flat on Monday as Japan’s export curbs on high-tech materials to Seoul hit sentiment, outpacing the positive momentum created by the Sino-U.S. trade truce. The Korean won fell, while the benchmark bond yield rose.

** Japan will tighten curbs on exports of high-tech materials used in smartphone displays and chips to South Korea amid a growing dispute over South Koreans forced to work for Japanese firms during World War II, the industry ministry said on Monday.

** In the aftermath of Tokyo’s announcement, shares of Samsung Electronics closed down 0.9%, while the electric sub-index ended 0.6% lower. However, some South Korean firms producing materials used in semiconductor manufacturing process closed firmer.

** Seoul stock market’s main KOSPI closed down 0.85 points or 0.04% at 2,129.77 points.

** Over the weekend, the meeting between U.S. President Donald Trump and China’s Xi Jinping soothed trade worries, while Trump’s meeting with North Korean leader Kim Jong Un relieved geopolitical risks (around the Korean peninsula), said Lee Young-gon, an analyst at Hana Financial Investment. However, the KOSPI index ended steady as the possibility of trade conflict with Japan weighed on South Korea’s IT shares, Lee added.

** The United States and China agreed on Saturday to restart their trade talks after U.S. President Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.

** However, the Sino-U.S. agreement did not fundamentally change outlook for the global economy, according to Moody’s Managing Director Michael Taylor. Although the agreement would likely partially relieve recent negative sentiment in the financial markets and support near-term growth, it stopped short of removing existing tariffs, he was cited as saying.

** Foreigners were net buyers of 155.0 billion won ($133.88 million) worth of shares on the main board.

** The won was quoted at 1,158.8 per dollar on the onshore settlement platform, 0.35% lower than its previous close at 1,154.7.

** In offshore trading, the won was quoted at 1,158.6 per U.S. dollar, down 0.3% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,156.8 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.43%, after U.S. stocks closed higher. Japanese stocks rose 2.13%.

** The KOSPI climbed 4.35% so far this year, and gained 3.0% 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 403.95 million shares and, of the total traded issues of 892, the number of advancing shares was 493.

** The won lost 3.7% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds dipped 0.05 points to 110.35, while the 3-month Certificate of Deposit rate was quoted at 1.78%.

** The most liquid 3-year Korean treasury bond yield rose by 0.5 basis points to 1.477%, while the benchmark 10-year yield climbed by 0.5 basis points to 1.602%.

$1 = 1,157.7300 won Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips

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