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S.Korea won, stocks slide to multi-week lows on N.Korea risks
September 28, 2017 / 3:01 AM / 19 days ago

S.Korea won, stocks slide to multi-week lows on N.Korea risks

    * S.Korea expects more N.Korea provocations in October
    * Won at 7-week low, stocks at 2-week low
    * Foreign investors set to be sellers for a 4th session

    SEOUL, Sept 28 (Reuters) - The South Korean won       
skidded to a seven-week low on Thursday and shares fell for the
eighth straight session as the government said it expect more
provocations from North Korea in coming weeks.
    In a meeting with President Moon Jae-in on Thursday,
national security adviser Chung Eui-yong said he expected
Pyongyang to act around Oct. 10 and 18, to coincide with the
anniversary of the founding of its communist party and China's
all-important Communist Party Congress, but he gave no details.
            
    The won            was quoted at 1,146.2 as of 0239 GMT, its
lowest intraday trading level since Aug. 11. It was down 0.5
percent from Wednesday's close of 1,140.7. 
    The Korea Composite Stock Price Index (KOSPI)         slid
0.2 percent to 2,368.23 points, its weakest level since Sept.
15.
    With risks looming from North Korea and an expected U.S.
rate hike in December, investors were squaring positions before
a long holiday break, said June Park, a foreign exchange analyst
at Daishin Economic Research Institute.
    "Since no one knows what will happen in the financial
markets over the Chuseok break, market players are trying to be
as safe as possible."
    Foreign investors trimmed a net 55.6 billion Korean won
($48.52 million) worth of KOSPI shares near mid-session, set to
be sellers for four straight sessions. 
    South Korea's finance minister said he sees the recent
sell-off in local shares as a temporary phenomenon and will
closely monitor markets over the holiday.             
    The Seoul bourse was quite mixed with advancing issues
slightly outnumbering decliners by 420 to 371.
    Shares of SK Hynix            , the world's no.2 chipmaker,
was up 1 percent after gaining 3 percent as the company said on
Wednesday that it will participate in the plans to purchase
Toshiba's          memory chip unit.             
    Kia Motors             fell 2.2 percent and Hyundai Motor
            was modestly down, shrugging off South Korean
government's plan to offer cheap loans to auto-component makers
hit by declining sales in China.             
    December futures on three-year treasury bonds         shed
0.02 point to 108.56. 
    
                       0239 GMT    Prev close
 Dollar/won             1,146.2       1,140.7
 Yen/won             10.1493/04       10.1440
 *KTB futures            108.56        108.58
 KOSPI                 2,368.23      2,372.57
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Kim Coghill)
  

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