S.Korea stocks steady; focus shifts to Fed meet - EntornoInteligente

Entornointeligente.com / * KOSPI index flat, foreigners net sellers * Korean won drops versus U.S. dollar * South Korea benchmark bond yield rises SEOUL, June 17 (Reuters) – Round-up of South Korean financial markets: ** South Korea’s KOSPI index was flat on Monday ahead of a Federal Reserve meeting, while investors kept a cautious stance after a U.S. chipmaker giant painted a gloomy outlook for the industry. The won weakened, while benchmark bond yield rose. ** As of 0235 GMT, the Seoul stock market’s main KOSPI was trading flat 0.17 points or 0.01% at 2,095.24 points. ** The Federal Open Market Committee’s (FOMC) two-day policy meeting is set to begin on Tuesday. Strong U.S. retail sales data on Friday rolled back expectations of a Fed rate cut at this week’s meeting to 21.7%, from 28.3% on Thursday, according to CME Group’s FedWatch tool. But bets of an easing at the July meeting remain high at 85%. ** If the Fed provides a rate cut signal, it will boost South Korean stocks with an improved risk appetite, said Na Jong-hwan, an analyst at DS Investment & Securities. ** However, the index will face downside risks if U.S. chipmaker Micron Technology’s third-quarter results take a turn for the worse, he added. Micron will report its third-quarter results on June 25. ** Broadcom Inc sent shockwaves through the global chipmaking industry on Friday with its forecast that U.S.-China trade tensions and the ban on doing business with Huawei Technologies would knock $2 billion off the company’s sales this year. ** Foreigners were net sellers of 1.3 billion won ($1.10 million) worth of shares on the main board. ** The won was quoted at 1,186.2 per dollar on the onshore settlement platform , 0.08% lower than its previous close at 1,185.3. ** In offshore trading, the won was quoted at 1,186.3 per U.S. dollar, unchanged from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,184.8 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.29%, after U.S. stocks closed down. Japanese stocks rose 0.25%. ** The KOSPI rose 2.86% so far this year, but lost 4.9% 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 220.83 million shares and, of the total traded issues of 890, the number of advancing shares was 448. ** The won lost 5.9% against the U.S dollar so far this year. ** In money and debt markets, June futures on three-year treasury bonds dipped 0.05 points to 110.20, while the 3-month Certificate of Deposit rate was quoted at 1.81%. ** The most liquid 3-year Korean treasury bond yield rose by 1.8 basis points to 1.490%, while the benchmark 10-year yield rose by 2.9 basis points to 1.621%. ($1 = 1,186.3000 won) (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)
LINK ORIGINAL: Reuters

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