July 8, 2019 / 7:14 AM / 8 days ago

S.Korean stocks fall over 2% on reduced bets on steep U.S. rate cuts

* KOSPI index slumps, foreigners net buyers

* Korean won drops nearly 1% vs U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

SEOUL, July 8 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares fell over 2% on Monday, the most in two months, as strong U.S. jobs data tempered expectations of aggressive rate cuts by the Federal Reserve, and continued tensions between the world’s two largest economies dampened investor sentiment. ** The won weakened nearly 1% and forex dealers suspected South Korean authorities of taking measures to curb the currency’s weakness. The benchmark bond yield rose. ** U.S. job growth rebounded strongly in June, with government payrolls surging, but persistent moderate wage gains and mounting evidence the economy was losing momentum could still encourage the Fed to cut interest rates this month.

** The Seoul stock market’s main KOSPI stock index closed down 46.42 points, or 2.20%, at 2,064.17, hitting the lowest close since May 31. The junior KOSDAQ stock index lost 3.7%. ** Reduced bets on steep U.S. rate cut affected the KOSPI index as well as Asian shares, said Noh Dong-kil, an analyst with NH Investment & Securities. As seen by the sharp fall in Chinese markets, hawkish remarks from China about the trade issue also pulled down the KOSPI index, he added. ** China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war. Wang also warned against “protectionism in the name of national security”, without mentioning the United States. ** South Korean President Moon Jae-in urged Japan to withdraw export curbs of high-tech materials bound for South Korea, calling the restriction a bid to limit bilateral private trade with a political aim.

** Foreigners were net buyers of 10.2 billion won ($8.63 million) worth of shares on the main board.

** The won was quoted at 1,182.0 per dollar on the onshore settlement platform, 0.98% lower than its previous close at 1,170.4.

** In offshore trading, the won was quoted at 1,181.9 per U.S. dollar, down 0.6% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,180.7 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.46%, after U.S. stocks sagged . Japanese stocks fell 0.98%.

** The KOSPI has risen 1.13% so far this year, and gained 2.5% 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 was 507.76 million shares and, of the total traded issues of 896, the number of advancing shares was 44.

** The won has lost 5.6% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.03 points to 110.57, while the 3-month Certificate of Deposit rate was quoted at 1.78%.

** The most liquid 3-year Korean treasury bond yield rose by 0.6 basis point to 1.429%, while the benchmark 10-year yield rose by 1.1 basis points to 1.543%.

$1 = 1,181.8200 won Reporting by Hayoung Choi, Yena Park; Editing by Subhranshu Sahu

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