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S.Korea won, stocks slip on Brexit worries, dollar strength
October 5, 2016 / 2:57 AM / a year ago

S.Korea won, stocks slip on Brexit worries, dollar strength

* Won falls to a 2-wk low
    * Foreign investors continue stock-dumping on risk-off

    SEOUL, Oct 5 (Reuters) - The South Korean won and
shares sagged early on Wednesday as a risk-off mood strengthened
due to sterling's sudden fall and a U.S. Federal Reserve
official's comments hinting at a rate hike at the end of the
    The won was quoted at 1,114.0 as of 0221 GMT,
down 0.6 percent compared with Tuesday's close of 1,107.8.
    The Korea Composite Stock Price Index (KOSPI) was
down 0.1 percent at 2,053.74 points.
    The Brexit minister said on Tuesday his government would
only negotiate one departure agreement with the European Union,
with no separate deal for London - the heart of the country's
huge financial sector. 
    Jeong My-young, a foreign exchange analyst at Samsung
Futures, said the minister's remarks caused a sharp fall in 
sterling, with growing market fears of Brexit fallout pressuring
riskier assets including the won.  
    She added that Fed officials' comments supporting a December
rate hike also affected the won. 
    Offshore investors were set to be sellers, offloading a net
46.8 billion Korean won ($42 million) worth of KOSPI shares near
mid-session, weighing on the index.
    Samsung Electronics Co Ltd remained steady
despite news it will be the sole contract manufacturer of
Qualcomm Inc's new high-end Qualcomm Snapdragon 830
chips after saying in January it would be the sole maker of
Qualcomm's Snapdragon 820 chips. 
    Shares of LG Display Co Ltd gained more than 2
percent on expectations of positive third-quarter earnings. 
    Decliners outnumbered advancers 431 to 339.
    December futures on three-year treasury bonds shed
0.12 point to 110.75. 
                       0221 GMT    Prev close
 Dollar/won             1,114.0       1,107.8
 Yen/won             10.8209/26       10.8402
 *KTB futures            110.75        110.87
 KOSPI                 2,053.74      2,054.86
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Eric Meijer)

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