June 16, 2020 / 3:28 AM / 21 days ago

S.Korean shares surge on U.S. Fed's corporate bond buying plan

    * KOSPI rises, foreigners net buyers
    * Korean won strengthens versus U.S. dollar
    * South Korea benchmark bond yield falls

    SEOUL, June 16 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korean shares rebounded sharply on Tuesday, along
with Asian peers, as the U.S. Federal Reserve's plans to
purchase corporate bonds boosted investors' risk appetite. The
Korean won strengthened, while the benchmark bond yield fell.
    
    ** The Seoul stock market's main KOSPI         rose 87.51
points, or 4.31%, to 2,118.33 as of 0235 GMT. It is set to mark
the sharpest gain since March 25.
    
    ** The Federal Reserve said it will start purchasing
corporate bonds on Tuesday through the secondary market
corporate credit facility, one of several emergency facilities
recently launched by the U.S. central bank to improve market
functioning in the wake of the COVID-19 pandemic.             
    
    ** South Korea's vice finance minister warned on Tuesday
that the country's stock market may see increased volatility
after a recent surge in the number of retail investors in
stocks.             
    
    ** Shares extended gains sharply across the board as
investors rushed to stocks after the previous session's
over-reaction, said Seo Jung-hun, an analyst at Samsung
Securities.
    
    ** The Korea Exchange said on Tuesday sidecars were
activated on the benchmark KOSPI         and the junior KOSDAQ
        , halting programme trading for five minutes, for the
first time since March 24.
    
    ** Foreigners were net buyers of 111.1 billion won ($92.19
million) worth of shares on the main board. 
    
    ** The won was quoted 0.70% higher at 1,207.6 per dollar on
the onshore settlement platform           .
    
    ** In offshore trading, the won        was quoted 0.3%
higher at 1,204.6 per dollar, while in non-deliverable forward
trading its one-month contract               was quoted at
1,204.1.
    
    ** In money and debt markets, June futures on three-year
treasury bonds         rose 0.07 point to 112.02.
    
    ** The most liquid 3-year Korean treasury bond yield fell by
0.6 basis point to 0.854%, while the benchmark 10-year yield
fell by 2.0 basis points to 1.404%.

($1 = 1,205.1400 won)

 (Reporting by Jihoon Lee; Editing by Krishna Chandra Eluri)
  
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