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S.Korea won, stocks tentative waiting for Fed; Trump's comments eyed
September 20, 2017 / 2:59 AM / a month ago

S.Korea won, stocks tentative waiting for Fed; Trump's comments eyed

    * Caution prevails ahead of Fed result; KOSPI, won in tight
range
    * Trump calls N.Korean leader "rocket man" on "suicide
mission"
    * Trump's comments "quite strong" and risks will linger
-analyst

    SEOUL, Sept 20 (Reuters) - The South Korean won        and
shares' trading were subdued early on Wednesday as the investors
waited for the outcome from the Federal Reserve's policy
meeting, setting aside U.S. President Donald Trump's comments
about North Korea overnight.
    Trump said on Tuesday that the United States would be forced
to "totally destroy" North Korea unless Pyongyang backs down
from its nuclear challenge, mocking North Korean leader Kim Jong
Un as a "rocket man" on a "suicide mission".             
    "Trump's comments were actually very strong and the won
would have moved more if it were not for the overall cautious
mood before the Fed's decision," said Kim Doo-un, a foreign
exchange analyst at Hana Financial Investment.
    As of 0228 GMT, the won            stood at 1,128.9 to the
dollar, up 0.2 percent versus Tuesday's close of 1,131.3.
    The Korea Composite Stock Price Index (KOSPI)         was
down 0.1 percent at 2,413.56 points.
    Hana's Kim said additional risks stemming from Trump's
comments could linger in the local markets and add volatility to
 the won if the Fed were to hint more openly at the timing of a
rate hike or cutting its bond portfolio.   
    Foreign investors were poised to be net sellers of the KOSPI
shares as they continued to take profits ahead of Fed meeting
results. They unloaded a net 117.8 billion Korean won ($104.37
million) worth of shares near mid-session. 
    Shares in Hyundai Motor             rose 1.4 percent while
Korea Electric Power Corp             lost 1.6 percent.
    Decliners outnumbered advancers 495 to 299.
    September futures on three-year treasury bonds         shed
0.01 point to 109.94. 
    
                       0228 GMT    Prev close
 Dollar/won             1,128.9       1,131.3
 Yen/won             10.1204/30       10.1262
 *KTB futures            109.94        109.95
 KOSPI                 2,413.56      2,416.05
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Eric Meijer)
  

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