Seoul: Won slips on risk-off sentiment, stocks flat
[SEOUL] The South Korean won edged down early on Tuesday in a risk-averse mood ahead of the US-China summit this week, compounded by the bombing of an underground train in St Petersburg, Russia.
Shares of Hyundai Motor dropped 2.6 per cent while Kia Motor lost nearly one per cent on news Hyundai Motor Co and Kia Motors have slashed vehicle production in China amid diplomatic tensions and competition from local brands.
Market participants were focused on the meeting between US President Donald Trump and Chinese President Xi Jinping later this week. Any mention of their strategies on North Korea could affect South Korean markets.
The won stood at 1,117.8 against the US dollar as of 0319 GMT, down 0.2 per cent versus Monday's close of 1,115.3.
"What South Korean markets need to know from Trump and Xi's meeting is whether they made any mention of tangible action against North Korea's missiles," said Paik Seokhyun, a foreign exchange analyst at Shinhan Bank.
Mr Paik said any comments that signal a hard-line policy against North Korea could raise geopolitical tension and weaken the won.
President Donald Trump held out the possibility on Sunday of using trade as a lever to secure Chinese cooperation against North Korea, and suggested Washington might deal with Pyongyang's nuclear and missile programmes on its own if need be.
South Korean shares were flat, with foreign investors set to be net sellers of local stocks near mid-session, offloading 46.4 billion won (S$57.96 million) worth.
The Korea Composite Stock Price Index (Kospi) was down 0.1 per cent at 2,164.46 points.
Decliners outnumbered advancers 513 to 256.
June futures on three-year treasury bonds gained 0.09 point to 109.56.
REUTERS
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
Europe: Stoxx ends lower as auto giants weigh; investors parse inflation data
US: Wall Street stocks fall as markets weigh strong wage data, Fed meeting
Japan may have spent 5.5 trillion yen on Apr 29 intervention, BOJ data suggests
Singapore stocks rise, tracking regional bourses; STI up 0.3%
Asia: Markets build on Wall Street rally, yen holds bounce
Singapore shares open in the red on Tuesday; STI down 0.3%