Seoul shares may edge lower, weaker yen to hit exporters

Tue Jul 2, 2013 7:38pm EDT

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SEOUL, July 3 (Reuters) - Seoul shares will likely open
lower on Wednesday after global equities eased overnight, with
weakness in the Japanese yen expected to hit exporters like
Hyundai Motor Co, analysts said.
    "There is little upside momentum in the market right now.
There is little that foreign investors could be cheerful about,"
said Lee Kyoung-soo, a market analyst at Shinyoung Securities.
    Exporters in the auto and technology sectors would likely
feel the negative impact of the falling Japanese yen, which has
the potential to make their goods less competitive versus
Japanese counterparts.
    The dollar hit a one-month high versus the Japanese yen in
New York trading on Tuesday.     
    South Korea's benchmark index ended flat at 1,855.02
points on Tuesday.
    Crude oil refiners and chemical companies could be buoyed
after U.S. crude jumped to a nine-month high above $99 a barrel
on Tuesday. Gains in crude oil prices tend to strengthen prices
of oil and petrochemical products. 

--------------------MARKET SNAPSHOT @22:31 GMT---------------   
            INSTRUMENT    LAST    PCT CHG    NET CHG    
S&P 500               1,614.08    -0.05%     -0.880    
USD/JPY                 100.60    -0.02%     -0.020    
10-YR US TSY YLD    2.471      --        0.000    
SPOT GOLD            $1,243.44     0.17%      2.050    
US CRUDE                $99.71     0.11%      0.110    
DOW JONES             14932.41    -0.28%     -42.55    
ASIA ADRS              135.45     0.14%       0.19    
------------------------------------------------------------->Wa
ll St slips in volatile session                  
>Demand for cash sinks bill yields before US payroll 
>Dollar gains broadly on Fed view;US jobs data eyed 
>US oil vaults above $99 on Middle East worry       
    
    STOCKS TO WATCH
    
    KOREAN AIR LINES CO LTD 
    Shares in South Korea's top carrier may react to media
reports that one of its passenger flights to Chicago had to make
an emergency landing in Russia due to engine
problems. 
    
    HYUNDAI MOTOR CO 
    Hyundai Motor is recalling about 5,200 Azera sedans in the
United States to address an issue where the airbag may deploy
with less or greater force than needed in an
accident. 
    
    CONSTRUCTION SHARES
    Shares in construction firms could rise after minutes from
the Bank of Korea's June interest rate meeting showed it
believed the downward trend in housing prices is nearing its
end.    

 (Reporting by Jungyoun Park; Editing by Stephen Coates)
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