August 23, 2019 / 2:42 AM / 4 months ago

S.Korea stocks fall amid escalating trade conflict with Japan

    * KOSPI index falls, foreigners net sellers
    * Korean won weakens versus U.S. dollar
    * South Korea benchmark bond yield rises

    Seoul, Aug 23 (Reuters) - Round-up of South Korean financial
    ** South Korean shares fell on Friday after the country
scrapped intelligence-sharing pact with Japan, adding to
tensions between the two nations in the grip of a long-drawn
trade dispute. The Korean won weakened, while the benchmark bond
yield rose.
    ** As of 0213 GMT, the Seoul stock market's main KOSPI
        fell 2.23 points, or 0.11%, to 1,948.78.
     **South Korea said on Thursday it will scrap an
intelligence-sharing pact with Japan, drawing a swift protest
from Tokyo and deepening a decades-old dispute over history that
has hit trade and undercut security cooperation over North
    ** Japanese Minister of Defence Takeshi Iwaya said on Friday
South Korea's decision to end an intelligence-sharing pact
between the East Asian neighbours was extremely regrettable.
    ** Japan's excluding South Korea from the so-called White
list will take effect on Aug. 28; investors may stay cautious
until then, says KB Securities report 
    ** Ending intelligence-sharing pact is more about security
issue, so it will take some time until it actually impacts on
corporate earnings, says Huh Jae-hwan, analyst at Eugene
Investment Co.  
    ** South Korea's finance minister said on Friday the
government would propose to increase spending by 9.2% in next
year's budget to shield Asia's fourth-largest economy from
growing risks.             
    ** Foreigners were net sellers of 9.2 billion won worth of
shares on the main board. 
    ** The won was quoted at 1,213.8 per dollar on the onshore
settlement platform           , 0.53% lower than its previous
close at 1,207.4.
    ** In offshore trading, the won        was quoted at 1,214.4
per U.S. dollar, down 0.4% from the previous day, while in
non-deliverable forward trading its one-month contract
              was quoted at 1,213.4 per dollar.
    ** MSCI's broadest index of Asia-Pacific shares outside
Japan                 was down 0.09%, after U.S. stocks mixed
           . Japanese stocks         rose 0.26%.
    ** The KOSPI has fallen 4.52% so far this year, and lost
5.2% 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 in the KOSPI index
        was 196.42 million shares, and of the total 889 traded
issues, 248 shares advanced.
    ** The won has lost 8.1% against the U.S dollar so far this
    ** In money and debt markets, September futures on
three-year treasury bonds         fell 0.12 points to 111.20
    ** The most liquid 3-year Korean treasury bond yield rose by
3.1 basis points to 1.161%, while the benchmark 10-year yield
rose by 4.1 basis points to 1.270%.

 (Reporting by Yuna Park; Editing by Rashmi Aich)
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