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Seoul: Won, stocks edge up, investors await BOE policy meeting

Thursday, August 4, 2016 - 10:42
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[SEOUL] The South Korean won and shares rebounded early on Thursday from the previous session's losses as market expectations for the Bank of England to come up with more monetary easing modestly boosted risk sentiment.

The won was quoted at 1,113.5 as of 0212 GMT, up 0.4 per cent versus Wednesday's close of 1,117.6.

The Korea Composite Stock Price Index (Kospi) was up 0.2 per cent at 1,997.79 points.

The BoE policy decision will be announced after Korean markets have closed.

"Investors are expecting the BOE to cut rates and offer stimulus since nobody knows how Brexit will affect the economy in the long term. Such expectations are supporting South Korean markets today," said Jung Sung-yoon, a foreign exchange analyst at Hyundai Futures.

He added the won will not extend gains past the 1,110 level because U.S. employment data on Friday is bound to show more light on the state of the economy.

Offshore investors were poised to be net buyers, purchasing a net 11.7 billion Korean won (S$14.1 million) worth of Kospi shares near mid-session.

Steelmaker Posco rose 1.8 per cent while software services firm Samsung SDS Co Ltd gained 2.2 per cent.

Advancing issues outnumbered declining ones 411 to 342.

September futures on three-year treasury bonds lost 0.01 point to 111.00.

REUTERS