Seoul: Won, stocks recover as Fed Sept hike talk ebbs
[SEOUL] The South Korean won and shares rebounded early on Tuesday after US Federal Reserve Governor Lael Brainard's comments made it more likely that the Fed will stand pat in September.
The won stood at 1,109.5 as of 0203 GMT, up 0.4 per cent compared with Monday's close of 1,113.5.
The Korea Composite Stock Price Index (Kospi) was up 0.6 per cent at 2,003.54 points.
"If the Fed ends up keeping its rates unchanged for September, the won will be kept at its current level which is at around 1,100," said June Park, a foreign exchange analyst at Daishin Economic Research Institute.
"However, the won is expected to weaken toward the year-end since the Fed seems like it really wants to raise rates within this year," added Ms Park.
Offshore investors were poised to be net buyers, purchasing 131.0 billion Korean won (S$160.7 million) worth of Kospi shares near mid-session.
Shares of Samsung Electronics Co Ltd bounced almost 5.0 per cent, paring its losses from the previous session following news that Samsung Group de facto leader Jay Y Lee is poised to take a board seat.
Korea Electric Power Corp gained more than 2 per cent.
Advancers slightly outnumbered decliners 446 to 348.
September futures on three-year treasury bonds gained 0.04 point to 110.64.
South Korean market will be closed from Wednesday to Friday for a national holiday and resume its trade on September 19.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Mixed trading in Asia as investors watch for further macro data; STI down 0.2%
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data
Singapore shares open lower on Friday; STI down 0.1%
Stocks to watch: CLI, Great Eastern, MIT, Sheng Siong, iFast, OUE, Far East Orchard