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Seoul: Won posts sharp gain on reduced China worries; shares rebound

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] The South Korean won soared against the dollar on Thursday on hopes China will not let the yuan depreciate more after its central bank said there was no basis for further weakening, given strong economic fundamentals.

The won closed local trade up 1.4 per cent to 1,174.0 against the dollar, marking the sharpest one-day percentage gain since Dec 1, 2011.

On the Seoul stock market, the benchmark Korea Composite Stock Price Index (KOSPI) ended 0.4 per cent ahead at 1,983.46 points, breaking a five-day losing streak as worry about the Chinese yuan abated.