March 16, 2020 / 3:10 AM / 16 days ago

S.Korea stocks fall as Fed's emergency cut fails to ease virus fears

    * KOSPI falls, foreigners sell net $265.3 mln
    * KRW slides against USD
    * S.Korea benchmark bond yield falls

    SEOUL, March 16 (Reuters) - Round-up of South Korean
financial markets:
 
** South Korean shares fell on Monday as emergency rate cuts in
the United States and New Zealand failed to calm investors
worried about the rising economic fallout from the coronavirus
pandemic. The won slid against dollar, while the benchmark bond
yield also fell.
 
** By 0237 GMT, the benchmark KOSPI         was down 12.22
points, or 0.69%, at 1,759.22, after opening up 1.9%. It has
fallen 19.84% so far this year.
 
** The U.S. Federal Reserve cut interest rates by 100 basis
points to near zero on Sunday in another emergency move to help
shore up the world's largest economy.             
 
** New Zealand's central bank slashed interest rates by 75 basis
points to a record low on Monday.             
 
** South Korea's finance ministry on Monday pledged to take
stabilisation measures to prevent herd-like behaviour in
currency market, and to supply liquidity if needed.             
 
** South Korea reported 74 new coronavirus infections on Monday,
bringing the national tally to 8,236.              
 
** "(The) volatility (in markets) will remain high until the
virus issue is fundamentally resolved," said Huh Jae-hwan, an
analyst at Eugene Investment & Securities.
 
** The larger gap between the interest rates in the United
States and Korea, due to the Fed's rate cut, can prevent a sharp
outflow of foreign capital, but the effect will be limited, he
added.
 
** Foreigners were net sellers of 323.8 billion won ($265.29
million) worth of shares on the main board.
 
** E-mini futures for the S&P 500 index        dropped 4.77%,
while MSCI's broadest index of Asia-Pacific shares outside Japan
                was down 2.56%.
 
** The won was quoted at 1,220.3 per dollar on the onshore
settlement platform           , 0.08% lower than its previous
close at 1,219.3.
 
** In offshore trading, the won        was quoted at 1,219.9 per
U.S. dollar, down 0.7% from the previous day, while in
non-deliverable forward trading its one-month contract
              was quoted at 1,216.2 per dollar.
 
** In money and debt markets, March futures on three-year
treasury bonds         rose 0.35 points to 111.37. It rose as
much as 0.63 points in early trade.
 
** The most liquid 3-year Korean treasury bond yield fell by 8.6
basis points to 1.063%, while the benchmark 10-year yield fell
by 3.2 basis points to 1.536%.
    
    ($1 = 1,220.5700 won)

 (Reporting by Joori Roh; Editing by Aditya Soni)
  
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