July 8, 2019 / 2:37 AM / 2 months ago

S.Korea stocks fall on fears of less aggressive Fed cut, Japan export curb

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

    Seoul, July 8 (Reuters) - Round-up of South Korean financial
** South Korean shares fell more than 1% on Monday due to
diminishing hopes of an aggressive rate cut by the U.S. Federal
reserve and growing uncertainty over Japan's export curbs. The
Korean won weakened, while the benchmark bond yield rose.
** At 0230 GMT, Seoul's benchmark KOSPI index         fell 38.99
points, or 1.85%, to 2,071.60.
** Japan's tightening curbs on exports of high-tech materials is
weighing on the stock market sentiment as uncertainty spreads to
other business sectors, said Kim Yong-goo, an analyst at Hana
Financial Investment.
** U.S. job growth rebounded strongly in June, with government
payrolls surging, but persistent moderate wage gains and
mounting evidence that the economy was losing momentum could
still encourage the Federal Reserve to cut interest rates this
** But earlier investors were expecting the Fed to cut interest
rate by 50 basis points in July but now they expect it to be
lowered by 25 bps or kept unchanged, which may lead to less
capital liquidity in the stock market, Kim added.       
** South Korea on Monday repeated a demand for Japan to withdraw
tightened curbs imposed last week on exports of materials for
making chips and smartphone displays, and pledged to help
affected domestic companies.             
** Foreigners were net sellers of 21.2 billion won ($17.99
million) worth of shares on the main board. 
** The won was quoted at 1,176.3 per dollar on the onshore
settlement platform           , 0.50% lower than its previous
close at 1,170.4.
** In offshore trading, the won        was quoted at 1,176.8 per
U.S. dollar, down 0.2% from the previous day, while in
non-deliverable forward trading its one-month contract
              was quoted at 1,175.9 per dollar.
** MSCI's broadest index of Asia-Pacific shares outside Japan
                was down 0.97%, after U.S. stocks fell
           . Japanese stocks         fell 0.78%.
** The KOSPI has risen 1.66% so far this year, and gained 2.5%
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 on the KOSPI index
        was 210.18 million shares and, of the total traded
issues of 892, the number of advancing shares was 55.
** The won has lost 5.2% against the U.S dollar so far this
** In money and debt markets, September futures on three-year
treasury bonds         fell 0.06 points to 110.48, while the
3-month Certificate of Deposit rate was quoted at 1.78%.
** The most liquid 3-year Korean treasury bond yield rose by 1.5
basis points to 1.438%, while the benchmark 10-year yield rose
by 2.2 basis points to 1.554%.

($1 = 1,178.4000 won)

 (Reporting by Yuna Park; Editing by Rashmi Aich)
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