Seoul: Stocks, won fall on US immigration policy, US-China tariff spat, Stocks

Mon, Jul 02, 2018 – 4:03 PM

[SEOUL] South Korea's Kospi stock index slumped about 2.5 per cent on Monday to its lowest close in almost 14 months, as political risks heightened on immigration in the European Union ( EU) and a private survey showed at slowdown in China's manufacturing sector growth. Tension between the world's largest economies is likely to rise ahead of a July 6 deadline when the United States is due to impose US $ 34 billion of tariffs on Chinese exports. Bond yields edged down.

German Interior Minister Horst Seehofer on Chancellor Angela Merkel's government. 19659003] China's manufacturing industry growth rates in the United States of America rose from the United States, the Caixin / Markit Manufacturing Purchasing Managers' Index (PMI) showed on Monday. At 06:31 GMT, the Kospi was down 54.60 points, or 2.35 per cent, at 2,271.53. Market heavyweight Samsung Electronics fell more than 2.4 per cent, while LG Electronics closed down 4 per cent after hitting its lowest since October 2017.

Chinese economic stagnation. Steelmakers Posco and Hyundai Steel dropped more than 4 percent each, while Daewoo Engineering & Construction fell back to 6.10%.

Airline shares also plummeted over rising prices. Shares of Korean Air Lines and its affiliate budget, Jin Air, fell 4.1 percent and 6.3 percent, respectively. The won was quoted at 1.10 per dollar on the onshore settlement platform, 0.49 per cent weaker than its previous close at 1.114.5. In offshore trading, it was quoted at 1,119.02 per US dollar, down 0.46 per cent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,102.05 per dollar.

MSCI's broadest index of Asia- Pacific shares outside Japan was down 0.71 per cent, after US stocks ended the previous session with gains. Japanese stocks weakened 2.21 per cent. The Kospi is down around 5.7 per cent so far this year, and down by 5.39 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 capitalization is 1.242.04 trillion won.

The trading volume during the session on the KOSPI index was 387,650,000 shares and, of the total traded issues of 888, the number of advancing shares was 85. Foreigners were net buyers of 115,476 million won worth of shares. The US dollar has risen 4.94 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 low is 1,125.17 on June 27, 2018.

In the money and debt markets, the future rose 0.03 points to 108.09. The Korean three-month Certificate of Deposit is 1.65 per cent, while the benchmark is three-year Korean treasury bond yielded 2.131 per cent, higher than the previous day's 2.12 per cent.

REUTERS