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S.Korea stocks hit record high as Seoul, Beijing seek to mend relations, won jumps
October 31, 2017 / 3:36 AM / 25 days ago

S.Korea stocks hit record high as Seoul, Beijing seek to mend relations, won jumps

    * S.Korea, China agree to get their relationships back on
track
    * Related shares rise after the announcement
    * Won at 8-week high on large foreign demand

    SEOUL, Oct 31 (Reuters) - South Korean shares rose to a
record high on Tuesday morning as sentiment got a boost from
news Seoul and Beijing had agreed to normalise relations that
were strained by a year-long standoff over the deployment of a
U.S. anti-missile system in South Korea.            
    Samsung Electronics'            , the largest capitalised
stock, barely reacted to robust September quarter earnings as
the results were largely priced in.             
    As of 0325 GMT, the Korea Composite Stock Price Index
(KOSPI)         was up 0.5 percent at 2,514.96 points, its
all-time intraday high.
    "Shares that have long been pressured by ongoing political
disputes between the two countries are reacting positively to
the announcement, including Hyundai Motor-related stocks," said
Cho Byung-hyun, a stock analyst at Yuanta Securities.
    South Korea and China have agreed to work swiftly to get
their relations back on track, a South Korea's foreign ministry
said in a statement on Tuesday.             
     The installation of the U.S. Terminal High Altitude Area
Defense (THAAD) system had angered China and spilled over into
trade, hurting South Korean business interests in the country.
    In early trade in Seoul, Lotte Tour Development Co Ltd
            surged over 18 percent to over six-year highs while
Lotte Shopping Co Ltd             jumped as much as 5.7 percent.
            
    Shares of Hyundai Motor             rose nearly 2 percent
while those of Hyundai Mobis             gained 5.7 percent.
    The market was also supported by offshore investors, who
purchased a net 185.6 billion Korean won ($165.61 million) worth
of stock near mid-session.
    The foreign demand for KOSPI shares helped drive the South
Korean won        to over an eight-week high. 
    The won            was quoted at 1,120.8 against the dollar,
the strongest intraday level since Sept. 1. It was up 0.3
percent from Monday's close of 1,124.6.
    December futures on three-year treasury bonds         shed
0.01 point to 107.85. 
    
                       0325 GMT    Prev close
 Dollar/won             1,120.8       1,124.6
 Yen/won             9.9028/072        9.9283
 *KTB futures            107.85        107.86
 KOSPI                 2,514.96      2,501.93
 * Front-month futures on three-year treasury bonds

For a round up of market news, please see our daily Asia Morning
Call report            

 (Reporting by Dahee Kim; Editing by Shri Navaratnam)
  

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