S.Korean stocks inch down as Hong Kong tensions threaten trade deal

* KOSPI edges lower, foreigners net sellers * Korean won weakens versus U.S. dollar * South Korea benchmark bond yield falls SEOUL, Nov 28 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares slipped on Thursday after U.S. President Donald Trump signed a legislation supporting Hong Kong supporters, drawing ire from Beijing and stoking fears about the prospects of a trade deal with China. The won weakened and the benchmark bond yield dropped. ** President Trump on Wednesday signed into law congressional legislation backing protesters in Hong Kong despite angry objections from Beijing, with which he is seeking a deal to end a damaging trade war. [nL1N2871Q2] ** China's Foreign Ministry said it resolutely opposed to the U.S. law on Hong Kong, noting Washington should shoulder all consequences if it continues this way. [nB9N27M01U] ** Trump's approval of the Hong Kong bill was the biggest source of anxiety in the markets today, but its impact was limited as it was factored in earlier, said Han Ji-young, an analyst at Cape Investment & Securities. ** As of 0214 GMT, the Seoul stock market's main KOSPI <.ks11> fell 2.29 points, or 0.11%, to 2,125.56. ** Shares of Samsung Publishing jumped by 30% daily limit as "Baby Shark" song re-enters Billboard chart. The company is the second-biggest shareholder in SmartStudy that created the song and video. [nL4N288096] ** Foreigners were net sellers of 32.0 billion won ($27.13 million) worth of shares on the main board. ** The won was quoted at 1,179.3 per dollar on the onshore settlement platform , 0.18% lower than its previous close at 1,177.2. ** In offshore trading, the won was quoted at 1,179.2 per U.S. dollar, down 0.3% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,178.0 per dollar. ** MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was down 0.09%, after U.S. stocks closed at record levels [MKTS/GLOB]. Japanese stocks <.n225> rose 0.03%. ** The KOSPI has risen 4.17% so far this year, and gained 2.2% in the previous 30 trading sessions. ** The trading volume during the session in the KOSPI index <.ks11> was 149.29 million shares and, of the total traded issues of 901, the number of advancing shares was 305. ** The won has lost 5.4% against the dollar so far this year. ** In money and debt markets, December futures on three-year treasury bonds was unchanged at 110.29, while the 3-month Certificate of Deposit rate was quoted at 1.53%. ** The most liquid 3-year Korean treasury bond yield fell by 1.5 basis points to 1.442%, while the benchmark 10-year yield fell by 1.6 basis points to 1.656%. ($1 = 1,179.3300 won) (Reporting by Hayoung Choi; Editing by Aditya Soni) ((hayoung.choi@thomsonreuters.com; +82 2 6936 1468;)) Keywords: SOUTHKOREA MARKETS/MIDDAY

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