September 7, 2017 / 2:49 AM / 18 days ago

S.Korea stocks, won rebound as US shelves talk of scuttling trade deal

    * KOSPI jumps more than 1 pct on US announcement about FTA
    * N.Korea risks still there; market welcoming positive
issues -analyst
    * Tech, financial sectors shine

    SEOUL, Sept 7 (Reuters) - South Korean shares looked set to
break a five-day losing streak on Thursday and the won climbed
after the White House said it was suspending internal
discussions about terminating the U.S. trade agreement with
Seoul.             
    The announcement overshadowed market concerns about the
additional deployment of the U.S. anti-missile THAAD system amid
growing provocations by North Korea, including a powerful
nuclear test on Sunday.             
    The Korea Composite Stock Price Index (KOSPI)         was up
1.1 percent at 2,345.63 points as of 0228 GMT.
    The South Korean won            rose 0.5 percent to 1,129.4
to the dollar, from Wednesday's close of 1,135.4.
    "North Korea risks are still there but the markets seem to
be responding more to positive issues like comments from
Washington about the FTA with South Korea (Free Trade
Agreement)," said Cho Byung-hyun, a stock analyst at Yuanta
Securities.
    President Donald Trump warned on Wednesday that the United
States would no longer tolerate North Korea’s actions but said
the use of military force against Pyongyang will not be his
"first choice."             
    Trump had been discussing pulling the plug on the trade deal
with South Korea out of concern that it was tilted against the
United States, but needs Seoul fully onside as he tries to
resolve the North Korean crisis.
    Despite lingering risks in the peninsula, offshore investors
turned to net buyers, adding a net 54.5 billion won ($48.26
million) worth of KOSPI shares to their portfolios near
mid-session, after selling 546.1 billion won worth of in the
past two days.
    Cho said foreign investors were mainly focusing on tech and
banking sectors where they expect strong earnings for the
third-quarter.
    The sub-index for electric and electronic shares        
rose nearly 2 percent. Tech giant Samsung Electronics
            was up 2.1 percent while SK Hynix             gained
1.3 percent. 
    Major financial shares         climbed 1.4percent with
Shinhan Financial Group             up over 2 percent. 
    Advancing issues far outnumbered declining ones 549 to 229.
    September futures on three-year treasury bonds         lost
0.01 point to 109.23. 
    
                       0228 GMT    Prev close
 Dollar/won             1,129.4       1,135.4
 Yen/won             10.3501/38       10.3602
 *KTB futures            109.23        109.24
 KOSPI                 2,345.63      2,319.82
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Kim Coghill)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below