* KOSPI drops, foreigners net sellers
* Korean won weakens versus U.S. dollar
* South Korea benchmark bond yield rises
* For the midday report, please click
SEOUL, May 22 (Reuters) - Round-up of South Korean financial markets:
** South Korean benchmark index closed 1.4% lower on Friday, logging its steepest loss in more than two weeks, as Sino-U.S. tensions heightened over Beijing’s intent to impose a new security law on Hong Kong.
** The won weakened, while the benchmark bond yield rose.
** The KOSPI ended down 28.18 points, or 1.41%, at 1,970.13, snapping a five-day winning streak. For the week, the index gained 2.22%, after two straight weekly losses.
** China will establish a “sound” legal system and enforcement mechanisms to ensure national security in Hong Kong, its Premier Li Keqiang said.
** The development comes a day after U.S. President Donald Trump’s warning against Beijing’s attempt to gain more control over the city and U.S. senators’ comments about introducing a legislation to impose sanctions on Chinese officials.
** The Hong Kong conflict triggered stock prices to reflect worries of Sino-U.S. tensions to a large extent, DS Investment & Securities’ analyst Na Jeong-hwan said, adding that investors also booked profits.
** Foreigners were net sellers of 467.8 billion won ($377.93 million) worth of shares on the main board.
** The won closed trading at 1,237.0 per dollar on the onshore settlement platform, 0.49% lower than its previous close at 1,230.9.
** In offshore trading, the won was quoted at 1,237.7 per dollar, down 0.4% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,238.0.
** In money and debt markets, June futures on three-year treasury bonds rose 0.10 point to 112.20.
** The most liquid 3-year Korean treasury bond yield fell by 1.5 basis points to 0.841%, while the benchmark 10-year yield rose by 0.8 basis point to 1.350%. ($1 = 1,237.8100 won) (Reporting by Jihoon Lee; editing by Uttaresh.V)