* KOSPI falls, foreigners net sellers * Korean won inches down against U.S. dollar * South Korea benchmark bond yield rises SEOUL, Aug 26 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares fell as much as 1.3% on Wednesday on worries of tougher social distancing rules after a rise in domestic coronavirus infections and as bleak U.S. data raised worries of a global economic recovery. ** By 0214 GMT, the benchmark KOSPI fell 16.61 points, or 0.70%, to 2350.12, set to snap three straight gains. ** South Korea reported 320 new infections as of midnight Tuesday, even as the country ordered most schools in Seoul and surrounding areas to close and move classes back online. ** The Bank of Korea will likely hold policy interest rate unchanged on Thursday, but it is expected to downgrade its economic projection by a large margin from the current 0.2% decline. ** U.S. consumer confidence dropped to a more than six-year low in August as households worried about the labour market and incomes, casting doubts on the sustainability of the economy's recovery from the COVID-19 recession. ** Markets are also watching out for Federal Reserve Chair Jerome Powell's speech on Thursday, when he is expected to address the U.S. central bank's view on inflation and monetary policy. ** Foreigners were net sellers of 46 billion won ($38.77 million) worth of shares on the main board. ** The won was quoted at 1,186.5 per dollar on the onshore settlement platform , 0.12% lower than its previous close of 1,185.1. ** In offshore trading, the won was quoted at 1,86.5 per dollar, down 0.1% from the previous day, while in non-deliverable forward trading, its one-month contract KRW1MNDFOR= was quoted at 1,186.04. ** In money and debt markets, September futures on three-year treasury bonds was down 0.04 points at 112.13. ** The most liquid 3-year Korean treasury bond yield was quoted at 0.825%, while the benchmark 10-year yield was at 1.387%. ($1 = 1,186.3900 won) (Reporting by Joori Roh; Editing by Amy Caren Daniel)
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