S.Korea stocks slip as U.S. support for HK protests fuels trade worries

Credit: REUTERS/KIM HONG-JI

Round-up of South Korean financial markets:

* KOSPI sags, foreigners net sellers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

SEOUL, Nov 20 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares slipped on Wednesday as concerns grew that trade relations between China and the United States could worsen further after the U.S. Senate unanimously passed legislation in support of Hong Kong protests. The won and the benchmark bond yield dropped.

** The Senate passed the legislation on Tuesday aimed at protecting human rights in Hong Kong amid China's crackdown on a pro-democracy protest movement that has gripped the vital financial centre for months. ** China on Wednesday condemned the U.S. Senate measure, vowing to take steps necessary to safeguard its sovereignty and security.

** Bookook Securities analyst Lee Won said there were worries that the move might affect China's stance on the trade talks.

** Washington would raise tariffs on Chinese imports if no deal is reached with Beijing to end the dispute, U.S. President Donald Trump said on Tuesday, threatening an escalation of the spat that has damaged economic growth worldwide.

** Investors now wait for the release of minutes from the Federal Reserve's latest policy meeting, where the central bank cut interest rates but signalled there would be no further reductions unless the economy takes a turn for the worse.

** As of 0144 GMT, the Seoul stock market's main KOSPI fell 16.20 points, or 0.75%, to 2,137.04.

** Foreigners were net sellers of 41.1 billion won ($35.14 million) worth of shares on the main board.

** The won was quoted at 1,169.7 per dollar on the onshore settlement platform , 0.18% lower than its previous close at 1,167.6.

** In offshore trading, the won was quoted at 1,170.0 per U.S. dollar, down 0.2% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,169.1 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.39%, after U.S. stocks were mixed overnight [MKTS/GLOB]. Japanese stocks fell 0.26%.

** The KOSPI has risen 4.77% so far this year, and gained 6.5% in the previous 30 trading sessions.

** The trading volume during the session in the KOSPI index was 206.05 million shares and, of the total traded issues of 900, the number of advancing shares was 232.

** The won has lost 4.6% against the dollar this year.

** In money and debt markets, December futures on three-year treasury bonds rose 0.09 point to 110.26, while the 3-month Certificate of Deposit rate was quoted at 1.53%.

** The most liquid 3-year Korean treasury bond yield fell by 2.5 basis points to 1.463%, while the benchmark 10-year yield declined by 3.8 bps to 1.699%.

($1 = 1,169.5800 won) (Reporting by Hayoung Choi; Editing by Subhranshu Sahu) ((hayoung.choi@thomsonreuters.com; +82 2 6936 1468;)) Keywords: SOUTHKOREA MARKETS/MIDDAY

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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