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S.Korea won strengthens on expansionary policy hopes, stocks rebound
May 11, 2017 / 3:00 AM / in 6 months

S.Korea won strengthens on expansionary policy hopes, stocks rebound

    * Won edges up; needs stronger momentum for further rise
    * KOSPI rebounds after sharp loss in prior session
    * Foreign investors set to snap 4-day buying spree

    SEOUL, May 11 (Reuters) - Hopes that expansionary fiscal
policies from the government of newly elected President Moon
Jae-In would boost the economy pushed up the South Korean won
      , while global risk sentiment strengthened on a rise in
oil prices, further  supporting the currency.
    The won            was quoted at 1,128.0 against the dollar
as of 0246 GMT, up 0.7 percent versus Wednesday's close of
    The risk-on mood also drove a rebound in South Korean shares
after Wednesday's sharp losses, with the Korea Composite Stock
Price Index (KOSPI)         up 0.9 percent at 2,289.74 points.
    Min Gyeong-won, a foreign exchange analyst at NH Futures,
noted market participants' expectations for expansionary fiscal
policy, but added:
    "While the market is betting on stronger won, there has to
be a decisive momentum in the market for the currency to rise
past the 1,130 level and hold on to the new level," Min said. 
    "Market players' wait-and-see approach to the Federal
Reserve's rate movements for the year is holding the dollar,
preventing a firm gain by the won."  
    Offshore investors were set to end a four-day buying spell,
selling a net 16.8 billion Korean won ($14.84 million) worth of
KOSPI shares near mid-session. 
    But LG Electronics             gained over 3 percent, helped
by foreign buying, while shares of Samsung SDI             rose
4.2 percent on tech sector optimism. 
    Advancing issues outnumbered declining ones by 474 to 323.
    June futures on three-year treasury bonds         gained
0.03 point to 109.23.
                       0246 GMT    Prev close
 Dollar/won             1,128.0       1,135.8
 Yen/won              9.8708/01        9.8955
 *KTB futures            109.23        109.20
 KOSPI                 2,292.59      2,170.12
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Eric Meijer)

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