S.Korea shares rise as President seeks to raise China curbs at G20

AmorePacific Holdings

23/06/2017 03:10

SEOUL, June 23 (Reuters) - South Korea's car and cosmetics 
stocks gained ground on Friday after the country's president 
told Reuters that he would address what is seen as Beijing's 
economic retaliation against South Korean businesses. 
    South Korean President Moon Jae-in said in an interview with 
Reuters on Thursday that he hopes to hold talks with China's Xi 
Jinping at the G20 summit in Hamburg, Germany, next month and 
ask for him to lift restraints on South Korean firms. 
 urn:newsml:reuters.com:*:nL3N1JJ5RY 
    South Korea's decision to deploy a U.S. anti-missile system 
to counter threats from North Korea has angered China, which 
says the system's powerful radar will look deep into its 
territory. 
    China has pressured South Korean businesses via boycotts and 
bans, such as ending Chinese group tours to South Korea, a blow 
to cosmetics firms and duty-free operators that relied on 
Chinese travellers' business.  
    "The Reuters report boosts hopes that the sanctions would be 
lifted. But it remains to be seen whether that will 
materialise," Yang Ji-hye, an analyst at Meritz Securities, 
said.  
    The rally came even as investors were bracing for sluggish 
earnings for cosmetics firms in the April to July quarter 
because of falling sales to Chinese consumers.  
    "Today's rise could be temporary, but its lifting the mood," 
Park Jin-sol, a retail analyst at Taurus Securities in Seoul 
said.  
    As of 0122 GMT, South Korea's Kolmar Holdings  024720.KS  is 
up 4.1 percent, while Amorepacific Corp  090430.KS  and Hankook 
Cosmetic  123690.KS  are up 2.1 percent and 2.2 percent 
respectively. The Korea Composite Stock Price Index (KOSPI) 
 .KS11  was up 0.2 percent. 
    Hyundai Motor  005380.KS  rose 1.9 percent and Kia Motors 
 000270.KS  was up 1.3 percent on the news. Auto sales had also 
been hit by Chinese disapproval of South Korea's anti-missile 
deployment.    
 
 (Reporting by Hyunjoo Jin and Cynthia Kim; Editing by Eric 
Meijer) 
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters 
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA COSMETICS/