July 10, 2019 / 7:41 AM / 3 months ago

S.Korean stocks rise; Samsung, SK Hynix climb on hopes of chip output cuts

* KOSPI index rises, foreigners net buyers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

Seoul, July 10 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares rose on Wednesday, led by gains in Samsung Electronics and SK Hynix on a report that the two companies planned to cut production of NAND chips amid a supply glut and Japan curbs. The won weakened, and the benchmark bond yield rose. ** The Seoul stock market’s main KOSPI closed 6.75 points, or 0.33%, higher at 2,058.78. ** Shares of Samsung Electronics and SK Hynix closed up 1% and 4.44%, respectively. The companies’ decision was affected by Japan tightening restrictions on exports of key materials for making chips, forcing them to restrict supplies, the report added.

** However, both the companies denied the report to Reuters.

** South Korea’s president said on Wednesday Japan’s export curbs could be prolonged and his government will sharply boost spending to help reduce their reliance on Japanese suppliers.

** While the curbs will make it difficult in the short term for South Korea’s memory giants to find alternative supplies of the materials, they also could lead to reductions in stockpiles and production ** Foreigners’ net buying mostly took place in IT shares on expectation that the supply glut can be resolved sooner than expected, said Kim Ji-hyung, analyst at Hanyang Securities.

** Foreigners net purchased IT shares worth 181.7 billion won.

** Meanwhile, they were net buyers of 201.3 billion won worth of shares on the main board.

** The won was quoted at 1,181.6 per dollar on the onshore settlement platform, 0.09% lower than its previous close at 1,180.5. ** In offshore trading, the won was quoted at 1,180.6 per U.S. dollar, up 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,180.4 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.32%, while U.S. stocks fell . Japanese stocks too declined 0.15%.

** The KOSPI has risen 0.87% so far this year, and gained 0.4% 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.

** Trading volume during the session on the KOSPI index was 350.02 million shares and, of the total traded issues of 895, the number of advancing shares was 537.

** 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 fell 0.06 points to 110.48, while the 3-month Certificate of Deposit rate was quoted at 1.78%.

** The most liquid 3-year Korean treasury bond yield rose by 0.7 basis points to 1.430%, while the benchmark 10-year yield rose by 1.6 basis points to 1.553%. (Reporting by Yuna Park; editing by Uttaresh.V)

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