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Seoul: Shares, won fall on China yuan move

Seoul shares reversed early losses to close at a three-week high on Thursday as recently undervalued shares extended gains, while foreigners continuously offloaded local stocks.

[SEOUL] South Korea's won and shares fell sharply on Tuesday after China's devaluation of the yuan early on Tuesday sparked caution among investors, with companies reliant on Chinese tourists seeing some of the heaviest selling.

The won fell 1.4 per cent to end local session at 1,179.1 per dollar after hitting a session low of 1,080.5, its weakest intraday level since June 5, 2012. It set the biggest daily percentage fall since May 10, 2013.

On the Seoul stock market, the benchmark Korea Composite Stock Price Index dropped 0.8 per cent to end at 1,986.65 points, reversing early gains of as much as 0.9 per cent. "Domestic consumption-related companies fell sharply after the won's steep decline and this took a heavy toll on the broader market," said Lee Kyung-min, an analyst at Daishin Securities.


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