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S.Korea won, stocks sag as Deutsche Bank woes heighten risk aversion
September 30, 2016 / 3:01 AM / a year ago

S.Korea won, stocks sag as Deutsche Bank woes heighten risk aversion

* Won declines for three consecutive sessions
    * Factory output falls fastest in 19 mths

    SEOUL, Sept 30 (Reuters) - The South Korean won and
stocks dropped early on Friday as risk aversion heightened after
Deutsche Bank shares slumped overnight, knocking Wall Street and
European markets.
     The won was quoted at 1,104.0 against the dollar
as of 0229 GMT, down 0.5 percent compared to Thursday's close of
1,098.8.
    On Thursday, Wall Street lost about 1 percent as Deutsche
Bank shares slumped to a record low after a report that trading
clients had withdrawn excess cash and positions held in the
largest German lender. 
    Jeong My-young, a foreign exchange analyst at Samsung
Futures, said that currencies in Asia are being pressured by the
risk-off mood while the won was also hit by foreign sales of
equities. 
    Jeong said the mood in markets in the near term will depend
somewhat on developments around Deutsche Bank, the largest
lender in Germany- Europe's biggest economy. 
    South Korean were also hit by the gloomy mood, with the
Korea Composite Stock Price Index (KOSPI) down 0.9
percent at 2,050.57 points.
    Data did little to help. South Korea's industrial production
fell by a seasonally adjusted 2.4 percent in August to post the
biggest decline in 19 months, hit by strikes at car factories,
but had limited impact on the market. 
    Offshore investors were net sellers, offloading 130.1
billion Korean won ($117.96 million) worth of KOSPI shares near
mid-session.
    Samsung Heavy Industries Co Ltd shares soared as
much as 10.3 pct after it secured a 420 billion won order to
build two LNG tankers in Europe. 
    Shares of Samsung C&T Corp rose 1 percent after
it said it will resume work on a $588.9 million project in
Algeria. 
    Decliners far outnumbered advancers 669 to 143.
    December futures on three-year treasury bonds gained
0.06 point to 110.96. 
    
                       0229 GMT    Prev close
 Dollar/won             1,104.0       1,098.8
 Yen/won             10.9217/70       10.9033
 *KTB futures            110.95        110.89
 KOSPI                 2,050.57      2,068.72
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Shri Navaratnam)

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