Seoul: Stocks, won hold steady ahead of Fed, BOJ

[SEOUL] South Korean shares and the won treaded water early on Wednesday, as market participants stayed on the sidelines ahead of the US Federal Reserve's policy decision later in the global day.

The Korea Composite Stock Price Index (Kospi) was down 0.1 per cent at 2,024.88 points as of 0214 GMT.

The won was quoted at 1,133.9 to the dollar, up 0.1 per cent compared with Tuesday's close of 1,134.9.

Cho Byung-hyun, a stock analyst at Yuanta Securities said that once global events pass this week, the Kospi will head upward unless South Korea's July export data due on Aug 1 turns out to be surprisingly weak.

"There is a possibility of the Japanese yen getting stronger after the Bank of Japan's meeting and hurt shares as a result, but the impact will be short-lived," said Mr Cho.

The Bank of Japan's policy decision is expected on Friday.

Foreign investors were poised to be buyers for 15 consecutive days, purchasing a net 67.7 billion Korean won (S$81 million) worth of Kospi shares near mid-session.

The world's top liquid crystal display maker LG Display Co Ltd said its second-quarter profit fell 91 per cent from a year earlier to 44 billion won, but the shares showed little change since the result was in line with estimates.

LG Household & Healthcare Ltd dropped more than 7 per cent on profit taking.

Decliners outnumbered advancers 402 to 360.

September futures on three-year treasury bonds were unchaged at 111.10.

REUTERS