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Seoul: Stocks, won drop on China economy slowdown

[SEOUL] South Korea's KOSPI stock index and the Korean won weakened on Monday after the release of Chinese data showed a slowdown in the economy. South Korean bond yields also fell. At 06:31 GMT, the Kospi was down 8.91 points or 0.39 per cent at 2,301.99.

South Korean nitrile rubber exporters tumbled after China's Ministry of Commerce said it would impose temporary anti-dumping measures on nitrile rubber from South Korea and Japan from July 16. Shares of the two companies named in the case, Kumho Petro Chemical Co Ltd and LG Chem , fell as much as 6.6 per cent and 2.2 per cent, respectively.

Shares of GS Retail Co Ltd and BGF Retail Co Ltd edged down 10.7 per cent and 7.8 per cent each after the country's Minimum Wage Commission said it would raise minimum wages by 10.9 per cent for 2019, which is 8,350 won an hour.

The won was quoted at 1,129.2 per dollar on the onshore settlement platform, 0.5 per cent weaker than its previous close at 1,123.5. In offshore trading, the won was quoted at 1,128.31 per US dollar, up 0.06 per cent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,112.25 per dollar.

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MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.50 per cent, after US stocks ended the previous session with mild gains. Japanese stocks were closed due to national holiday. The KOSPI is down around 6.3 per cent so far this year, and down by 4.07 per cent in the previous 30 days.

The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 per cent and the market capitalisation is 1,242.04 trillion won. The trading volume during the session on the KOSPI index was 293,258,000 shares and, of the total 891 traded issues, the number of advancing shares was 319. ** Foreigners were net sellers of 24,390 million won worth of shares.

The US dollar has risen 5.81 per cent against the won this year. The won's high for the year is 1,053.55 per dollar on April 2, 2018, and the low is 1,133.98 on July 13, 2018. In money and debt markets, September futures on three-year treasury bonds rose 0.07 points to 108.19. The Korean three-month Certificate of Deposit benchmark rate was quoted at 1.65 per cent, while the benchmark 3-year Korean treasury bond yielded 2.087 per cent, lower than the previous day's 2.11 per cent.

REUTERS