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S.Korea stocks rise as tech sector recovers, won softens
June 13, 2017 / 2:54 AM / 5 months ago

S.Korea stocks rise as tech sector recovers, won softens

    * Market awaits hints on U.S. interest rate trend - analyst
    * KOSPI likely to continue its rally after Fed meeting
    * Won softer, Fed chief Yellen's comments in focus

    SEOUL, June 13 (Reuters) - South Korean shares rebounded
early on Tuesday, aided by a sharp reversal in technology firms
such as LG Display            , while the market priced in the
prospect of a rise in U.S. interest rates this week.
    The Korea Composite Stock Price Index (KOSPI)         rose
0.4 percent to 2,368.32 points by 0242 GMT.
    "Market players believe there can be no other scenario than
a rate hike from the Fed's June policy meeting. The focus is
more on hints for another rate hike at the end of the year and
guidelines for how it will reduce its massive balance sheet,"
said Kim Ji-hyung, a stock analyst at Hanyang Securities.
    Kim added that the Fed's decision will not hurt current firm
fundamentals in the local economy and the KOSPI will continue to
rally after digesting the event.
    Domestic institutions purchased a net 95.6 billion won
($84.69 million) worth of KOSPI shares near mid-session,
offsetting foreign investors' stock-selling of 59.3 billion won
    Shares of LG Display fully made up for the previous day's
losses by jumping nearly 6 percent. Most tech shares also showed
moderate gains with the sub-index         up 0.4 percent.
Automobile manufacturer Hyundai Motor             gained 2.2
    Advancers outnumbered decliners 542 to 249.
    Meanwhile, the South Korean won        turned slightly
weaker ahead of the Fed's two-day policy meeting which begins
later on Tuesday, with traders cautious as they await comments
from Fed Chair Janet Yellen.
    The won            stood at 1,129.6 to the dollar, down 0.2
percent versus Monday's close of 1,127.3. 
    June futures on three-year treasury bonds         rose 0.01
point to 109.49. 
                       0242 GMT    Prev close
 Dollar/won             1,129.6       1,127.3
 Yen/won             10.2700/56       10.2771
 *KTB futures            109.49        109.48
 KOSPI                 2,368.32      2,357.87
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Jacqueline Wong)

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