S.Korea won, stocks edge up, investors await BOE policy meeting

SAMSUNG SDS

04/08/2016 03:23

* Won unlikely to strengthen past 1,100 level - analyst 
    * Markets expect more stimulus from BOE 
 
    SEOUL, Aug 4 (Reuters) - The South Korean won  KRW=  and 
shares rebounded early on Thursday from the previous session's 
losses as market expectations for the Bank of England to come up 
with more monetary easing modestly boosted risk sentiment. 
    The won  KRW=KFTC  was quoted at 1,113.5 as of 0212 GMT, up 
0.4 percent versus Wednesday's close of 1,117.6. 
    The Korea Composite Stock Price Index (KOSPI)  .KS11  was up 
0.2 percent at 1,997.79 points. 
    The BoE policy decision will be announced after Korean 
markets have closed. 
    "Investors are expecting the BOE to cut rates and offer 
stimulus since nobody knows how Brexit will affect the economy 
in the long term. Such expectations are supporting South Korean 
markets today," said Jung Sung-yoon, a foreign exchange analyst 
at Hyundai Futures. 
    He added the won will not extend gains past the 1,110 level 
because U.S. employment data on Friday is bound to show more 
light on the state of the economy.  
    Offshore investors were poised to be net buyers, purchasing 
a net 11.7 billion Korean won ($10.52 million) worth of KOSPI 
shares near mid-session. 
    Steelmaker Posco  005490.KS  rose 1.8 percent while software 
services firm Samsung SDS Co Ltd  018260.KS  gained 2.2 percent. 
    Advancing issues outnumbered declining ones 411 to 342. 
    September futures on three-year treasury bonds  KTBc1  lost 
0.01 point to 111.00.  
     
                       0212 GMT    Prev close 
 Dollar/won             1,113.5       1,117.6 
 Yen/won             11.0150/58       11.0222 
 *KTB futures            111.00        111.01 
 KOSPI                 1,997.79      1,994.79 
 * Front-month futures on three-year treasury bonds 
 
 (Reporting by Dahee Kim; Editing by Eric Meijer) 
 ((Dahee.Kim@thomsonreuters.com; +82 2 3704 5643; Reuters 
Messaging: dahee.kim@thomsonreuters.com)) 
 
Keywords: SOUTHKOREA MARKETS/MIDDAY