S.Korea stocks rise on solid hopes of interest rate cut by U.S. Fed

SKC

12/07/2019 03:46

* KOSPI index rises, foreigners net buyers
    * Korean won weakens versus U.S. dollar
    * South Korea benchmark bond yield up

    SEOUL, July 12 (Reuters) - Round-up of South Korean
financial markets:
    
** South Korean shares advanced on Friday as hopes of an
interest rate cut by the U.S. central bank remained firm, while
strong U.S. inflation data relieved concerns over the world's
largest economy. The Korean won dropped, while the benchmark
bond yield rose.
 
** U.S. underlying consumer prices increased by the most in
nearly 1-1/2 years in June amid solid gains in the costs of a
range of goods and services, but will probably not change
expectations the Federal Reserve will cut rates this month.  urn:newsml:reuters.com:*:nLNSBIEF6Y
    
** Investors are broadly expecting a rate cut by the U.S.
Federal Reserve later this month and U.S. inflation figures
tempered worries on economy, said Noh Dong-kil, an analyst at NH
Investment & Securities. Until July end, when the Fed will
decide whether to cut rates, South Korean markets would continue
positive flow, he added. 
    
** As of 0240 GMT, the benchmark KOSPI stock index  .KS11  rose
6.70 points or 0.30% to 2,086.87 points. 
    
** Shares of South Korea's retail companies gained after the
country's Minimum Wage Commission said it has agreed to raise
next year's hourly minimum wage by 2.9% to 8,590 won ($7.30),
the weakest hike since 2010.  urn:newsml:reuters.com:*:nL4N24D04X
    
** Shares of SKC Kolon PI  178920.KQ , a joint venture of SKC
 011790.KS  and Kolon Industries  120110.KS , jumped on a media
report that the two firms have decided to sell their stake in
the world's leading polyimide maker.  urn:newsml:reuters.com:*:nL4N24D0AW
    
** Foreigners were net buyers of 6 billion won ($5.10 million)
worth of shares on the main board. 
        
** The won was quoted at 1,176.2 per dollar on the onshore
settlement platform  KRW=KFTC , 0.23% lower than its previous
close at 1,173.5.
     
** In offshore trading, the won  KRW=  was quoted at 1,175.7 per
U.S. dollar, down 0.1% from the previous day, while in
non-deliverable forward trading its one-month contract
 KRW1MNDFOR=  was quoted at 1,174.8 per dollar.
    
** MSCI's broadest index of Asia-Pacific shares outside Japan
 .MIAPJ0000PUS  was up 0.13%, after U.S. stocks gained
 MKTS/GLOB . Japanese stocks  .N225  rose 0.01%.
        
** The KOSPI has risen 2.31% so far this year and gained 2.8% in
the previous 30 trading sessions.
    
** The current price-to-earnings ratio is 12.10, the dividend
yield is 1.28% and the market capitalisation is 1,242.04
trillion won.
    
** The trading volume during the session on the KOSPI index
 .KS11  was 172.34 million shares and, of the total traded
issues of 892, the number of advancing shares was 430.
    
** The won has lost 5.1% against the U.S dollar so far this
year.
    
** In money and debt markets, September futures on three-year
treasury bonds  KTBc1  fell 0.06 points to 110.47.
    
** The most liquid 3-year Korean treasury bond yield rose by 1.7
basis points to 1.436%, while the benchmark 10-year yield rose
by 3.8 basis points to 1.585%.

($1 = 1,176.1200 won)

 (Reporting by Hayoung Choi; Editing by Arun Koyyur)
 ((hayoung.choi@thomsonreuters.com; +82 2 3704 5643; Reuters
Messaging: hayoung.choi.thomsonreuters.com@reuters.net))