July 29, 2019 / 2:18 AM / 4 months ago

S.Korea stocks drop amid trade jitters, markets brace for Fed rate cut

    * KOSPI index falls over 1%, foreigners net sellers
    * Korean won strengthens versus U.S. dollar
    * South Korea benchmark bond yield falls

    SEOUL, July 29 (Reuters) - Round-up of South Korean
financial markets:
South Korean shares shed 1.5% on Monday, as investors wore a
cautious stance ahead of a likely interest rate cut by the
Federal Reserve, while expectations were low for headway in a
Sino-U.S. trade dispute as negotiators were set to meet this
week. The Korean won rose, while the benchmark bond yield fell.
** As of 0200 GMT, the Seoul stock market's main KOSPI        
was down 31.36 points or 1.52% at 2,034.90 points.
** The U.S. Fed is broadly expected to cut its benchmark rate by
a quarter point at its July 30-31 meeting. 
** Meanwhile, U.S. and Chinese trade negotiators also meet in
Shanghai this week for their first in-person talks since a G20
truce last month, but expectations are low for a breakthrough.  
** U.S. President Donald Trump put pressure on the World Trade
Organization on Friday to change how it designates developing
countries, singling out China for unfairly getting preferential
** The Fed will cut the rates, but uncertainties after the cut
remain high, said Seo Sang-young, an analyst from Kiwoom
Securities. South Korea's chipmakers are dropping as investors
locked in profits, he added. 
** Shares of Samsung Electronics             and SK Hynix
            dived 1.9% and 2.6%, respectively. So far this
month, SK Hynix shares were up 11.80%, compared with a 4.39%
drop in the broader market        .
** Foreigners were net sellers of 36.4 billion won ($30.82
million) worth of shares on the main board. 
** The won was quoted at 1,181.6 per dollar on the onshore
settlement platform           , 0.27% higher than its previous
close at 1,184.8.
** In offshore trading, the won        was quoted at 1,180.7 per
U.S. dollar, up 0.2% from the previous session, while in
non-deliverable forward trading its one-month contract
              was quoted at 1,178.9 per dollar.
** MSCI's broadest index of Asia-Pacific shares outside Japan
                was down 0.13%, after U.S. stocks jumped.
Japanese stocks         dropped 0.44%.            
** The KOSPI down 0.21% so far this year, but lost 1.4% 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.
** The trading volume during the session on the KOSPI index
        was 238.65 million shares and, of the total traded
issues of 891, the number of advancing shares was 77.
** The won lost 5.6% against the U.S dollar so far this year.
** In money and debt markets, September futures on three-year
treasury bonds         dipped 0.01 points to 110.82, while the
3-month Certificate of Deposit rate was quoted at 1.53%.
** The most liquid 3-year Korean treasury bond yield fell by 0.4
basis points to 1.304%, while the benchmark 10-year yield
dropped by 1.1 basis points to 1.413%.

($1 = 1,181.0000 won)    

 (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)
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