S.Korea won at 1-wk high as risk appetite rises

SEOUL, Jan 7 (Reuters) - The South Korean won KRW= hit a one-week high against the dollar early on Wednesday as hopes for economic stimulus packages at home and abroad increased risk appetite, lifting Seoul shares.

The won was quoted at 1,294.9/5.6 per dollar as of 0010 GMT, compared with Tuesday's domestic close KRW=KFTC of 1,312.5.

It gained to as high as 1,289.8, the strongest since Dec. 31, 2008.

"Firmer global stock markets amid weakening preference for safer assets lifted the won. Foreign investors continued to buy shares here, lending further support to the currency," said an analyst at a local futures firm.

South Korean shares .KS11 rose 0.85 percent as foreign investors bought a net 39.8 billion won worth of stocks, heading for their sixth consecutive buying session, which would be the longest purchasing spree since April, 2007.

Last year, foreigners sold a combined net 33.6 trillion won in shares, their highest annual net sales ever, putting pressure on the won and hurting the country's balance of payments.

0010 GMT prev close Won KRW= 1,294.9/5.6 1,312.5 Yen/won JPYKRW=R 13.8344/66 14.0876/16 KOSPI .KS11 1,204.45 1,194.28 (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)