Seoul: Won changes course, edges up; stocks advance

[SEOUL] The South Korean won ended Wednesday morning marginally stronger after appetites for emerging market risk fell, then rose before declining again.

The local currency stood at 1,153.6 per US dollar up 0.1 per cent compared to Tuesday's close of 1,155.1.

The won edged down at the opening of the session, reacting to Monetary Fund managing director Christine Lagarde's gloomy outlook over the global economy.

Later appetites for other Asian currencies improved, helping lift the won before some of its advance was pared.

"The won's further gain may be capped since the investors'risk demand does not seem strong enough," said Jeon Seung Ji, a foreign exchange analyst at Samsung Futures.

South Korean shares edged up as foreigners were net buyers early in the day after being large sellers on Tuesday.

The Korea Composite Stock Price Index (KOSPI) was up 0.4 per cent at 1,970.04 points as of 0213 GMT.

Offshore investors purchased a net 33.5 billion Korean won (S$39.25 million) of KOSPI shares near mid-session.

Market heavyweight Samsung Electronics Co Ltd rebounded from Tuesday's loss and gained 1.6 per cent.

Major steel companies shares supported the main bourse with Posco up 4.8 per cent and Hyundai Steel Co rising 2.4 per cent. The sub-index gained 2.5 per cent.

Decliners outnumbered advancers 467 to 334.

June futures on three-year treasury bonds shed 0.02 point to 110.32.

REUTERS