Reuters logo
S.Korea won, stocks down on Fed cues, weak China data; BOK stands pat
October 13, 2016 / 2:46 AM / a year ago

S.Korea won, stocks down on Fed cues, weak China data; BOK stands pat

* Bank of Korea's decision give limited impact on the market
    * Won weakens for three consecutive sessions

    SEOUL, Oct 13 (Reuters) - The South Korean won and
shares slipped early on Thursday after minutes of the U.S.
Federal Reserve's last meeting backed market expectations for a
December rate increase.
    There was muted reaction in domestic markets to the Bank of
Korea's (BOK) widely expected decision earlier in the day to
hold rates steady. 
    But exports data from China - South Korea's major trading
partner - came in worse-than-expected and may have hurt risk
sentiment broadly. 
    The won stood at 1,125.3 against the dollar as of
0218 GMT for the third straight day of losses, down 0.1 percent
compared to Wednesday's close of 1,123.6.
    The Korea Composite Stock Price Index (KOSPI) was
down 0.7 percent at 2,019.07 points, in line with weak regional
    Offshore investors purchased a net 26.5 billion Korean won
($23.77 million) worth of KOSPI shares near mid-session. 
     Providing some relief, market heavyweight Samsung
Electronics Co Ltd, sold heavily in the past three
days amid a phone recall crisis, recovered somewhat by 2
    Web portal Naver Corp lost more than 2 percent. 
    Decliners far outnumbered advancers 607 to 184. 
    "BOK's decision was fully priced in, and therefore had
limited impact on the market. The local currency is responding
more to the dollar's movement," said Ha Keon-hyeong, an
economist at Shinhan Investment Corp.
    He said the dollar could extend gains depending on U.S.
economic data in the near term. 
    The dollar was boosted on Wednesday by the minutes of the
Fed's September policy meeting showing several voting members of
the policy committee judged a rate hike would be warranted
"relatively soon" if the U.S. economy continued to strengthen.
    December futures on three-year treasury bonds gained
0.08 point to 110.70. 
                       0218 GMT    Prev close
 Dollar/won             1,125.3       1,123.6
 Yen/won             10.8381/30       10.7898
 *KTB futures            110.70        110.62
 KOSPI                 2,019.07      2,033.73
 * Front-month futures on three-year treasury bonds

($1 = 1,114.7500 won)

 (Reporting by Dahee Kim; Editing by Shri Navaratnam)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below