You are here

Seoul: Won, stocks join global rally, recover losses from Brexit


[SEOUL] The South Korean won and shares rallied early on Thursday, clawing back more of the losses incurred in the Brexit vote fallout as a rise in US stocks and global oil prices broadly boosted riskier assets.

The won stood at 1,152.5 as of 0212 GMT, up 0.7 per cent compared with Wednesday's close of 1,160.2.

The Korea Composite Stock Price Index (Kospi) was up 0.4 per cent at 1,964.62 points.

"Foreigners coming back in for local equities and exporters selling US dollars near month-end are also buttressing the won today," said Park Yuna, a foreign exchange analyst at Dongbu Securities.

Ms Park added that the won might strengthen beyond 1,150 level because US economic indicators generally positive enough to continue the current global rally, although there are uncertainties around the Brexit issue.

The won was set to mark a gain for June, while shares were expected to post a decline for the third straight month.

Both the currency and stocks looked set for a loss on a quarterly basis.

Offshore investors were poised to be net buyers, purchasing 13 billion won (S$15.20 million) worth of Kospi shares near mid-session.

Screenmaker LG Display Co Ltd gained 2.7 per cent while automobile manufacturer Hyundai Motor Co lost 1.4 per cent.

Advancers outnumbered decliners 498 to 277.

September futures on three-year treasury bonds shed 0.04 point to 111.01.