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Seoul: Stocks, won gain as risk-averse mood begins to lift

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[SEOUL] South Korean shares and the won rose early on Wednesday as the immediate shock following Brexit dissipated in most Asian markets and acute risk aversion faded.

The Korea Composite Stock Price Index (Kospi) was up 1.2 per cent at 1,958.98 points as of 0209 GMT, and looked set for a third straight gaining session.

The won was quoted at 1,165.2 per US dollar, up 0.5 per cent compared with Tuesday's close of 1,171.3.

"US stocks also rose sharply overnight, reflecting that investors are now starting to come back for riskier assets. It is boosting South Korean stock market today," said Kim Ye Eun, a stock analyst at LIG Investment & Securities.

Ms Kim added that it was too early to say the impact from Brexit aftermath had settled down, and investors needed to watch developments in Britain and the European Union.

Outgoing Prime Minister David Cameron told EU leaders at Tuesday's summit that Britain's future relations with the EU could hinge on the union's willingness to rethink free movement of workers.

Foreign investors were set to end a three-day run of selling and purchased a net 39.1 billion Korean won (S$45.42 million) worth of Kospi shares near mid-session.

Chipmaker SK Hynix Inc rose 2.7 per cent while batterymaker Samsung SDI Co Ltd gained 4.9 per cent.

Advancers far outnumbered decliners 697 to 119.

September futures on three-year treasury bonds held steady at 110.99.

REUTERS