Seoul shares seen little changed on US budget standoff
SEOUL, Oct 7 (Reuters) - Seoul shares are expected to trade within a narrow range Monday with the unlikelihood of a short-term resolution to the U.S. government shutdown deterring local buyers, even as the prospect of a weaker dollar encourages some foreign investors. Uncertainty was heightened over the weekend after Republican House Speaker John Boehner warned the U.S. could be headed towards a default if U.S. President Barack Obama did not negotiate ahead of an Oct. 17 deadline to raise the debt ceiling. "The market will be contained to a box pattern on downside risks from prolonged shutdown of U.S. government," IBK Investment & Securities said to a note to its clients. Looking ahead, the brokerage said Wednesday's publication of minutes from the September meeting of the U.S. Federal Reserve's Open Market Committee could stir volatility if it points to vigorous debate about the timeline for the Fed's plans to begin trimming economic stimulus measures. Shinahan Securities analyst Han Beom-ho said a weaker dollar stemming from Washington's political standoff, leading to a firmer won, could provide one reason for foreign investors, a key driver of Seoul stocks, to keep putting money into the Seoul market in the upcoming week. Foreigners extended their net buying streak to a 27th consecutive session on Friday, purchasing 413.9 billion won ($386.70 million) worth of local shares. That brought their total purchases for the period to a net 10 trillion won. The Korea Composite Stock Price Index (KOSPI) fell 0.1 percent to close at 1,996.98 on Friday. KOSPI slipped 0.7 percent for the week, snapping a five-week winning streak. ------------------MARKET SNAPSHOT @ 22:40 GMT------------------- INSTRUMENT LAST PCT CHG NET CHG S&P 500 1,690.50 0.71% 11.840 USD/JPY 97.22 0.23% 0.220 10-YR US TSY YLD 2.645 -- 0.000 SPOT GOLD $1,313.90 0.25% 3.290 US CRUDE $103.43 -0.39% -0.410 DOW JONES 15072.58 0.51% 76.10 ASIA ADRS 147.21 0.62% 0.91 ---------------------------------------------------------------- >Wall St end up, but Dow S&P fall for week as shutdown drags >U.S. bill rates rise on government default worries >Dollar up from 8-month low but shutdown, debt limit looms >Oil ends higher as offshore oil output cut due to storm STOCKS TO WATCH SAMSUNG SDI CO LTD Battery producer Samsung SDI confirmed on Friday it is in talks with Tesla Motors Inc about supplying technology to the U.S. electric vehicle producer.
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