June 19, 2019 / 7:09 AM / a month ago

S.Korean stocks end firmer on revived hopes of trade truce

* KOSPI index rises 1.2%, foreigners net buyers

* Korean won strengthens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, June 19 (Reuters) - Round-up of South Korean financial markets: South Korea’s KOSPI index ended higher on Wednesday as U.S. President Donald Trump’s decision to meet his Chinese counterpart Xi Jinping this month rekindled optimism after a long lull. The Korean won rose against the dollar, while the benchmark bond yield dropped.

** The Seoul stock market’s main KOSPI closed up 26.08 points or 1.24% at 2,124.79 points, marking its highest close since early May.

** Trump said on Tuesday he had spoken to Xi Jinping and that the two leaders’ teams would restart trade talks in order to prepare for a meeting at the G20 summit in Japan later this month.

** The lingering trade tensions between the world’s two largest economies have roiled markets and affected global economy. The talks between the two sides to reach a broad deal broke down last month and their interaction since then has been limited.

** The local financial markets’ rally was driven by the news of the meeting, especially with their positive comments on trade negotiations, said Seo Sang-young, an analyst at Kiwoom Securities. Trump’s speech at his re-election campaign without hardline remarks on diplomacy also supported investor sentiment, he added.

** Trump formally launched his 2020 re-election campaign on Tuesday by presenting himself as the same political insurgent who shook up the Washington establishment four years ago and who is now a victim of an attempted ouster by Democrats.

** South Korean chipmakers, Samsung Electronics and SK Hynix, closed up 2.3% and 6%, respectively, on expectations that an upcoming summit between Washington and Beijing would ease trade tensions.

** Foreigners were net buyers of 302.6 billion won ($257.37 million) worth of shares on the main board.

** The won was quoted at 1,176.1 per dollar on the onshore settlement platform, 0.82% higher than its previous close at 1,185.8. The currency marked its highest close in six weeks against the dollar. ** In offshore trading, the won was quoted at 1,175.6 per U.S. dollar, down 0.1% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,174.2 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.75%, after U.S. stocks surged. Japanese stocks rose 1.72%.

** The KOSPI rose 4.10% so far this year, but lost 4.4% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session on the KOSPI index was 843.34 million shares and, of the total traded issues of 892, the number of advancing shares was 537.

** The won lost 5.1% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.05 points to 110.42, while the 3-month Certificate of Deposit rate was quoted at 1.80%.

** The most liquid 3-year Korean treasury bond yield fell by 0.7 basis points to 1.486%, while the benchmark 10-year yield dropped by 1.0 basis points to 1.604%. ($1 = 1,175.7500 won) (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)

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