S.Korea stocks plunge to 6-week low on global growth concerns; won falls

Jin Air Co

07/03/2019 07:16

* KOSPI index dips, foreigners sell
    * Korean won extends loss for a sixth day
    * South Korea bond yields down
    * For the midday report, please click  urn:newsml:reuters.com:*:nL3N20U0RC

    SEOUL, March 7 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korea's KOSPI stock index  .KS11  fell for a fifth
straight session on Thursday, tracking Wall Street losses after 
weak U.S. data, amid global growth concerns returned as OECD cut
global growth forecasts again. The Korean won ended with a mere
loss while the benchmark bond yields fell.
    
    ** The U.S. goods trade deficit surged to a record high in
2018 as strong domestic demand fuelled by lower taxes pulled in
imports, despite the Trump administration's "America First"
policies, including tariffs, aimed at shrinking the trade gap.
 urn:newsml:reuters.com:*:nL1N20S0OY
    
    ** Other U.S. data on Wednesday suggested some slowing in
the labour market, though the pace of job gains remains more
than enough to drive the unemployment rate down.
    
    ** Also weighing on investor sentiment were broader concerns
about growth after the Organization for Economic Co-Operation
and Development cut forecasts again for the global economy in
2019 and 2020.  urn:newsml:reuters.com:*:nL5N20S34M
    
    ** South Korea's finance ministry said the interim growth
rate forecast by the OECD was also cut to 2.6 percent from 2.8
percent for 2019, and to 2.6 percent from 2.9 percent for 2020,
adding that it expects the expansionary fiscal policy as well as
low inflation rate to support domestic demand.
    
    ** As of 0632 GMT, the benchmark index fell 9.81 points, or
0.45 percent, to 2,165.79, hitting its lowest close since Jan.
24. The KOSPI index has lost 3.1 percent in the last five
sessions.
    
    ** South Korean budget carrier Jin Air Co Ltd  272450.KS ,
an affiliate of the country's largest airline Korean Air Lines
Co Ltd  003490.KS , ended up 5.6 percent on hopes curbs by the
government would be lifted after Chairman Cho Yang-ho planned to
step down as director from the group's six affiliates.
 urn:newsml:reuters.com:*:nL3N20U0OQ
    
    ** The country's largest automaker Hyundai Motor Co
 005380.KS  closed up 0.8 percent after a report that the
company was considering plans to suspend production at its
oldest plant in China as it reels from tumbling sales and
massive overcapacity in its biggest market.  urn:newsml:reuters.com:*:nL3N20T2IV
    
    ** Hyundai "is reviewing production to enhance
competitiveness and profitability", the South Korean company
said on Wednesday, adding that the plan included "suspension,
not closure of Plant 1 in Beijing.
    
    ** Foreigners were net sellers of 284.9 billion won worth of
shares on the main board.
    
    ** The won was quoted at 1,129.0 per dollar on the onshore
settlement platform  KRW=KFTC , 0.02 percent lower than its
previous close at 1,128.8.
    
    ** In offshore trading, the won  KRW=  was quoted at 1,128.7
per U.S. dollar, down 0.1 percent from the previous day, while
in one-year non-deliverable forward trading its one-month
contract  KRW1MNDFOR=  was quoted at 1,127.8 per dollar.
    
    ** MSCI's broadest index of Asia-Pacific shares outside
Japan  .MIAPJ0000PUS  was down 0.26 percent, after U.S. stocks
ended its previous session with losses  MKTS/GLOB . Japanese
stocks  .N225  fell 0.65 percent.
    
    ** The KOSPI has risen 6.11 percent so far this year, and
rose 3.3 percent in the previous 30 trading sessions.
    
    ** The current price-to-earnings ratio is 12.10, the
dividend yield is 1.28 percent and the market capitalisation is
1,242.04 trillion won.
    
    ** The trading volume during the session on the KOSPI index
 .KS11  was 288 million shares and, of the total traded issues
of 897, the number of advancing shares was 219.
    
    ** The won has lost 1.2 percent against the dollar so far
this year.
    
    ** In money and debt markets, March futures on three-year
treasury bonds  KTBc1  rose 0.03 points to 109.19, while the
3-month Certificate of Deposit rate was quoted at 1.89 percent.
    
    ** The most liquid 3-year Korean treasury bond yield fell by
1.1 basis points to 1.817 percent, while the benchmark 10-year
yield fell by 1.8 basis points to 2.003 percent.

 (Reporting by Joori Roh; Editing by Gopakumar Warrier)
 ((joori.roh@thomsonreuters.com; +82 2 3704 5642; Reuters
Messaging: joori.roh.thomsonreuters.com@reuters.net))