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S.Korea won, stocks slip after Fed's decision; tech shares rally
September 21, 2017 / 3:11 AM / 3 months ago

S.Korea won, stocks slip after Fed's decision; tech shares rally

    * Fed's decisions weigh on overall S.Korean markets
    * Fed's decisions to have little impact on rate decision
here -S.Korea govt
    * Samsung Elec hit record high, SK Hynix gain as much as 3.3
pct

    SEOUL, Sept 21 (Reuters) - The South Korean won       
slumped to an almost one-week low and Seoul shares were down
slightly on Thursday morning, after the Federal Reserve's
decision to trim its portfolio and a signal for a possible rate
hike by year-end.             
    The won            was quoted at 1,132.6 against the dollar
as of 0232 GMT, down 0.4 percent versus Wednesday's close of
1,128.3.
    "The Fed seemed to be putting more weight on normalization
of U.S. rates while focusing on still low inflation," said Paik
Seokhyun, a foreign exchange analyst at Shinhan Bank.
    South Korea's government source said the Fed's decision to
reduce its $4.2 trillion in holdings of U.S. Treasury bonds and
mortgage-backed securities will have little impact on South
Korea's policy rate decisions.             
    The Korea Composite Stock Price Index (KOSPI)         was
down 0.2 percent at 2,408.54 points.
    Gains for market heavyweights such as Samsung Electronics
            and SK Hynix             contained broad market
losses.
    Samsung shares rose as much as 1.4 percent, revisiting a
intraday record-high at 2,648,000 won, spurred by expectations
the tech giant's quarterly earnings will exceed the market's
forecast. 
    Chipmaker SK Hynix also gained as much as 3.3 percent after
Japan's Toshiba Corp          agreed on Wednesday to sell its
prized semiconductor business to a group led by U.S. private
equity firm Bain Capital LP. Bain Capital has partnered with SK
Hynix.
    Investors also took heart from robust exports data, with
shipments jumping 31.1 percent for the first 20 days of the
month.             
    Foreign investors sold a net 50 billion won ($44.17 million)
worth of KOSPI shares near mid-session.
    Decliners outnumbered advancers 591 to 215.
    September futures on three-year treasury bonds         shed
0.07 point to 108.93. 
    
                       0232 GMT    Prev close
 Dollar/won             1,132.6       1,128.3
 Yen/won             10.0604/57       10.0748
 *KTB futures            108.93        109.00
 KOSPI                 2,408.54      2,412.20
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Shri Navaratnam)
  

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