June 10, 2019 / 6:57 AM / 4 months ago

S.Korean stocks rally on expectations of Fed rate cut; auto firms zoom

* KOSPI index adds 1.3%, foreigners net buyers

* Korean won drops versus U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

SEOUL, June 10 (Reuters) - Round of of South Korean financial markets:

** South Korea’s KOSPI stock index rose for a third consecutive session on Monday on growing bets for a rate cut by the U.S. Federal Reserve, while the trade deal between the United States and Mexico, and Beijing’s stimulus measures boosted domestic auto sector. The Korean won weakened, while the benchmark bond yield rose.

** The Seoul stock market’s main KOSPI closed up 27.16 points, or 1.31%, at 2,099.49, marking the biggest daily percentage gain since April 29.

** U.S. job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labour market, which could put pressure on the Federal Reserve to cut interest rates this year.

** Hopes of a Fed rate cut and the deal between the United States and Mexico were two biggest reasons which pushed KOSPI up, said Ha In-hwan, an analyst from Meritz Securities. China’s supportive measures to boost car sales also helped South Korean auto firms, Ha added.

** China announced a series of measures to revive slumping car sales, as Beijing tried to boost consumption of goods ranging from eco-friendly appliances to big-ticket items, which lifted shares of Chinese auto makers.

** The transportation equipment sub-index was the biggest percentage gainer among KOSPI subcategories, with a 2.5% advance. The largest auto maker Hyundai Motor rose 2.1% and second-largest maker Kia Motors added 4.5%.

** Foreigners were net buyers of 112.8 billion won ($95.21 million) worth of shares on the main board.

** The won was quoted at 1,185.2 per dollar on the onshore settlement platform, 0.32% lower than its previous close at 1,181.4. ** In offshore trading, the won was quoted at 1,185.1 per U.S. dollar, down 0.3% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,183.7 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.00%, after U.S. stocks rallied . Japanese stocks rose 1.20%.

** The KOSPI has risen 2.86% so far this year, but lost 6.7% 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 452.20 million shares and of the total traded issues of 891, 628 shares rose.

** The won has lost 5.9% against the U.S dollar so far this year.

** In money and debt markets, June futures on three-year treasury bonds fell 0.04 points to 110.09, while the 3-month Certificate of Deposit rate was quoted at 1.82%.

** The most liquid 3-year Korean treasury bond yield fell by 1.0 basis points to 1.527%, while the benchmark 10-year yield rose by 1.8 basis points to 1.653%. ($1 = 1,184.8000 won) (Reporting by Hayoung Choi; Editing by Rashmi Aich)

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