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Seoul: Won, stocks at 2-week high as strong Wall Street boosts sentiment
[SEOUL] The South Korean won and shares were at two-week highs early on Wednesday as investor appetite for riskier assets rose in the wake of strong gains on Wall Street overnight on easing concerns over geopolitical risks.
The won stood at 1,129.2 against the US dollar, up 0.4 per cent compared with Tuesday's close of 1,133.8, while the Korea Composite Stock Price Index (KOSPI) was at 2,365.89 points, both trading at their highest intraday level since Aug 9.
Investors are becoming more risk-friendly now that market worries about further provocations by North Korea have largely eased, said Paik Seokhyun, a foreign exchange analyst at Shinhan Bank.
"Cautiousness ahead of the US and South Korean joint military exercises had been keeping the currency from strengthening," Mr Paik said.
Foreign investors also returned to buy local shares, adding a net 43.9 billion Korean won (S$52.65 million) worth to their portfolios near the mid-session.
Tech firm LG Electronics traded up 2.3 per cent after it said it would establish an electric vehicle parts factory in Michigan.
Shares of Samsung Electronics rose nearly 1 per cent while Posco shares dropped 2.2 per cent.
September futures on three-year treasury bonds were unchanged at 109.07.
South Korea's finance ministry official said the ministry will conduct a survey on 50-year treasury bond soon and issue the bond if there's a demand.