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Seoul: Won, stocks slip on turmoil following Italy's referendum

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The South Korean won and shares eased early on Monday after Italian voters rejected a constitutional reform, as traders became wary of holding riskier emerging market investments.

[SEOUL] The South Korean won and shares eased early on Monday after Italian voters rejected a constitutional reform, as traders became wary of holding riskier emerging market investments.

A political scandal at home also weighed on the curency, after the sixth straight weekend of protest demanding the resignation of President Park Geun-hye over alledged collusion with a long-time friend.

The won stood at 1,174.2 against the US dollar as of 0300 GMT, down 0.14 per cent compared to the previous close of 1,172.6, falling for a second session.

The Korea Composite Stock Price Index (Kospi) was down 0.22 per cent at 1,966.17 points as of 0300 GMT.

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"The won will likely remain weak today and throughout this week with the renewed risk about Europe's banking sector," said Jung Sung-yoon, a currency analyst at Hyundai Futures.

Mr Jung sees trading staying jittery throughout this week, with markets worried over uncertainties in Italy, the euro zone's third largest economy.

On Kospi, Samsung Electronics was down 0.64 per cent while Posco lost 0.99 per cent, weighing on the index.

Offshore investors were expected to be net buyers, buying 8.3 billion Korean won (S$10.1 million) worth of Kospi shares near mid-session.

Decliners outnumbered advancers 608 to 218.

December futures on three-year treasury bonds rose 0.07 points to 109.24.

REUTERS

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