August 19, 2013 / 11:52 PM / in 4 years

Seoul shares to edge down as automakers, Fed, weigh on sentiment

SEOUL, Aug 20 (Reuters) - Seoul shares are set to open lower
on Tuesday with the labour union of market heavyweight Hyundai
Motor Co set to begin partial walkouts of workers,
intensifying concerns about the carmaker's earnings outlook. 
    Investor caution could heighten, analysts said, on the
decline of global stocks overnight, as well as a further rise in
U.S. Treasury yields on a view the U.S. Federal Reserve will
start unwinding its bond-buying stimulus next month.
    "As the global market focuses on the release of the FOMC
minutes in search of direction, [Hyundai Motor's] strike won't
help market sentiment," said Lee Kyung-soo, an analyst at
Shinyoung Securities, referring to minutes due Wednesday of the
Federal Open Market Committee's July 30-31 meeting.  
    Hyundai Motor's South Korean workers' union spokesman said
the union plans two two-hour partial strikes from Tuesday after
wage talks with managers broke down. 
    The Korea Composite Stock Price Index (KOSPI) 
finished down 0.1 percent at 1,917.64 points on Monday.
------------------MARKET SNAPSHOT @ 22:43 GMT-------------------
                  INSTRUMENT      LAST      PCT CHG      NET CHG
S&P 500                1,646.06       -0.59%       -9.770
USD/JPY                   97.69        0.14%        0.140
10-YR US TSY YLD     2.882         --          0.000
SPOT GOLD             $1,365.48        0.00%        0.000
US CRUDE                $106.88       -0.21%       -0.220
DOW JONES              15010.74       -0.47%       -70.73
ASIA ADRS               140.20       -0.82%        -1.16
>Wall St falls for fourth straight session as Fed eyed      
>Yields reach two-year highs as tapering seen near         
>Euro rises on Bundesbank report; Fed minutes in focus    
>Brent oil hit by profit-taking but supported by Egypt     
    Korea Ratings Corp lowered a notch of Dongbu
Corp's non-guaranteed bond credit rating to 'BBB-' on Monday
citing the company's excessive loans and worsened economic
climate due to a rise in production costs.
    The company said on Monday it had agreed a 195 billion won
($175 million) deal with Korea Midland Power Co Ltd [KEPCOM.UL
to ship soft coal. 
($1 = 1115.5500 Korean won)

 (Reporting by Jungmin Jang; Editing by Eric Meijer)

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