* KOSPI index edges down, foreigners buy
* Korean won slides versus U.S. dollar
* South Korea bond yields down
* For the midday report, please click
SEOUL, Feb 1 (Reuters) - Round-up of South Korean financial markets: South Korea’s KOSPI stock index shed early gains to end lower on Friday as factory activity shrank across Asia, while lacklustre China data offset optimism over trade deal between Beijing and Washington. The Korean won and bond yields dropped.
** U.S. President Donald Trump said he would meet Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as the top U.S. negotiator reported “substantial progress” in the talks, sending the South Korean shares up earlier in the session.
** Factory activity shrank across much of Asia in January, falling to the weakest in years in several countries and adding to worries that trade tariffs and cooling demand in China pose an increasing threat to global growth.
** China’s factory activity shrank the most in almost three years in January as new orders slumped further and output fell, the private Caixin/Markit PMI survey showed. The numbers were weaker than Thursday’s official PMI survey, but both suggested the economy is continuing to slow in the new year.
** South Korean factories also got off to a grim start in 2019 as activity in January contracted at the joint-fastest pace in over two years, a private survey showed on Friday, with new export orders continuing to shrink in yet another blow to the trade-reliant economy.
** South Korea’s exports shrank for a second straight month in January as faltering demand in China hit prices of memory chips and petrochemical products, adding further stress on the economy from slowing global growth and the U.S.-Sino trade dispute.
** At 0630 GMT, the KOSPI closed down 1.39 points or 0.06 percent at 2,203.46. For the week, the benchmark index rose 1.2 percent, extending its rally to a fourth week, the longest successive weekly gains in 15 months.
** South Korean financial markets are closed from Monday through Wednesday for Lunar New Year’s Day holiday. Markets will resume trade at normal hours on Thursday, Feb. 7.
** South Korea’s shipbuilders dropped after Hyundai Heavy Industries Co Ltd announced a share swap deal worth 2.1 trillion won ($1.89 billion) to take over second-ranked Daewoo Shipbuilding & Marine Engineering Co Ltd and create a global heavyweight controlling over 20 percent of the market. Daewoo Shipbuilding closed down 8.7 percent, while Hyundai Heavy fell 7.6 percent.
** Shares of South Korean firms exposed to North Korea jumped on U.S. special envoy’s remarks that North Korean leader committed to the dismantlement and destruction of nuclear facilities. Daea TI Co Ltd and Ilshin Stone Co Ltd ended up 17.4 percent and 7.4 percent, respectively.
** The won was quoted at 1,118.8 per dollar on the onshore settlement platform, 0.55 percent weaker than its previous close at 1,112.7. The currency inched up 0.2 percent on the week, rising for a second consecutive week.
** In offshore trading, the won was quoted at 1,118.6 per U.S. dollar, down 0.65 percent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,102.95 per dollar.
** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.16 percent, after U.S. stocks ended the previous session with gains. Japanese stocks rose 0.07 percent.
** The KOSPI jumped about 8 percent so far this year, and up by 6.46 percent in the previous 30 trading sessions.
** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 percent and the market capitalisation is 1,242.04 trillion won.
** The trading volume during the session on the KOSPI index was 471.73 million shares and, of the total traded issues of 896, the number of advancing shares was 440.
** Foreigners were net buyers of 261.70 billion won worth of shares on the main board.
** The U.S dollar rose 0.48 percent against the won this year. The won’s high for the year is 1,108.67 per dollar on Jan. 31, 2019 and low is 1,133.4 on Jan. 21, 2019.
** In money and debt markets, March futures on three-year treasury bonds rose 0.02 points to 109.29.
** The Korean 3-month Certificate of Deposit rate was quoted at 1.86 percent, while the most liquid 3-year Korean treasury bond yielded 1.801 percent, lower than 1.810 percent last quoted on the previous session. (Reporting by Joori Roh, Editing by Sherry Jacob-Phillips)