S.Korea won tumbles to 4-week low, shares slide on rising US-N.Korea tensions

LIG Defense & Aerospace

09/08/2017 01:54

* Trump warns "fire and fury" for North Korea if it 
threatens U.S. 
    * Won drops nearly 1 pct to lowest since mid-July 
    * KOSPI slides 0.8 pct; foreign investors set to be net 
sellers 
 
    SEOUL, Aug 9 (Reuters) - The South Korean won  KRW=  sank to 
a four-week low and shares  .KS11  fell on Wednesday after North 
Korea said it is considering plans for a missile strike on the 
U.S. Pacific territory of Guam. 
    The statement came just hours after President Donald Trump 
told the North that any threat to the United States would be met 
with "fire and fury", rattling global financial 
markets. urn:newsml:reuters.com:*:nL4N1KV00Y 
    The Korea Composite Stock Price Index (KOSPI)  .KS11  was 
down 0.8 percent at 2,375.59 points by 0047 GMT. It fell to as 
low as 2,376.62 soon after the open. 
    The won  KRW=KFTC  sank around 0.8 percent to 1,133.8 to the 
dollar, its weakest intraday level since July 14. 
    But shares of defence-related companies rose, with LIG Nex1 
Co Ltd  079550.KS  up nearly 5 percent and Firstec  010820.KS  
up 3 percent. 
    Washington has warned it is ready to use force if need be to 
stop North Korea's ballistic missile and nuclear programmes but 
that it prefers global diplomatic action, including sanctions. 
    The spread on South Korea's 5-year credit default swaps 
 KRGV5YUSAC=MG  stood at 56.4 basis points and risk reversals in 
won options  KRW3MRR=  at 1.2 points, both well below their last 
highs seen in April. 
 
 (Reporting by Dahee Kim; Editing by Kim Coghill) 
 ((Dahee.Kim@thomsonreuters.com; +82 2 3704 5643; Reuters 
Messaging: dahee.kim@thomsonreuters.com)) 
 
Keywords: SOUTHKOREA MARKETS/