S.Korean won firms on cenbank's hawkish cut; stocks shed early gains
11/10/2024 08:28
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Korean won strengthens against dollar
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KOSPI turns down, foreigners net sellers
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South Korea benchmark bond yield steady
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For the midday report, please click urn:newsml:reuters.com:*:nL1N3LN015
SEOUL, Oct 11 (Reuters) - Round-up of South Korean
financial markets:
** South Korea's won strengthened on Friday, after the
central bank kicked off its easing cycle and delivered what it
said was a 'hawkish cut' in interest rates, while stocks erased
early gains to end flat.
** The benchmark bond yield was steady.
** The Bank of Korea cut interest rates by a
quarter-percentage point, as widely expected, and flagged room
for further reduction.
** BOK Governor Rhee Chang-yong said the cut could be
"interpreted as a hawkish cut", as financial stability will
remain an important policy consideration.
** After the governor's comments, the won KRW=KFTC
strengthened as much as 0.7% against the dollar. It was quoted
up 0.42% at 1,349.5 per dollar, as of 0632 GMT.
** "The dollar-won rate fell on the meeting outcome, while
its impact was rather limited on the stock market, which turned
down in afternoon trade with heavyweight Samsung Electronics
cutting gains and an increase in foreign selling," said Seo
Sang-young, an analyst at Mirae Asset Securities.
** The benchmark KOSPI stock index .KS11 closed flat at
2,596.91, after rising nearly 1% earlier in the session.
** Chipmaker Samsung Electronics 005930.KS pared early
gains of 2% to close up 0.68%.
** Korea Zinc 010130.KS ended up 0.63%, after climbing
1.5% to an all-time high. The world's biggest zinc refiner
raised its tender offer price again, intensifying an ongoing
battle for a controlling stake.
** Shares of online bookstore Yes 24 053280.KQ surged 30%,
Samsung Publishing 068290.KS rose 14% and e-book platform
Millie Seojae 418470.KQ gained 24%, as South Koreans rushed
for books written by novelist Han Kang, who won the 2024 Nobel
Prize in Literature.
** Foreigners were net sellers of shares worth 601.2 billion
won ($445.31 million).
** In money and debt markets, December futures on three-year
treasury bonds KTBc1 were up 0.06 point at 105.85.
** The most liquid three-year Korean treasury bond yield
KR3YT=RR fell 2.3 basis points to 2.942%, while the benchmark
10-year yield KR10YT=RR rose 0.1 basis points to 3.080%.
($1 = 1,350.0600 won)
(Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)
((jihoon.lee@thomsonreuters.com;))