July 3, 2019 / 6:59 AM / 17 days ago

S.Korean stocks slip on fragile growth outlook, Japan's export curbs

* KOSPI index marks biggest daily drop in 5 weeks, foreigners net sellers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, July 3 (Reuters) - Round-up of South Korean financial markets: ** South Korea’s KOSPI stock index shrank more than 1% on Wednesday as investors fretted over grim growth outlook and Japan’s export curbs effective from Thursday, sending shares of major chipmakers down. The Korean won and the benchmark bond yield fell.

** The Seoul stock market’s main KOSPI closed down 26.00 points, or 1.23%, at 2,096.02, falling for a fourth straight session.

** South Korea cut this year’s economic growth target to what would be a seven-year low as the prolonged U.S.-China tariff war hit global demand for the export powerhouse’s manufactured goods. The government now aims to achieve growth of between 2.4% and 2.5% this year, slower than the 2.6% to 2.7% range seen earlier. ** A South Korean central bank board member said the general conviction that the local economy would rebound in the second half of the year was weakening, adding to growing concerns about the outlook. ** South Korea’s major chipmakers, Samsung Electronics and SK Hynix, lost 1.8% and 3.2%, respectively, after analysts saw Japan’s export curbs would put pressure on the firms.

** Japan will tighten curbs on exports of high-tech materials used in smartphone displays and chips to South Korea amid a growing dispute over South Koreans forced to work for Japanese firms during World War Two.

** Ahead of the export regulations from Thursday, risk-off mood heightened, said Na Jong-hwan, an analyst at DS Investment & Securities. The finance ministry’s revised forecast is broadly in line with analysts’ views, he added.

** Foreigners were net sellers of 109.6 billion won ($93.59 million) worth of shares on the main board.

** The won was quoted at 1,171.3 per dollar on the onshore settlement platform, 0.45% lower than its previous close at 1,166.0.

** In offshore trading, the won was quoted at 1,170.7 per U.S. dollar, down 0.4% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,169.2 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.49%, after U.S. stocks closed up . Japanese stocks fell 0.53%.

** The KOSPI has risen 2.69% so far this year, and gained 3.2% 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 510.19 million shares and, of the total traded issues of 895, the number of advancing shares was 200.

** The won has lost 4.7% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.13 points to 110.53, while the 3-month Certificate of Deposit rate was quoted at 1.78%.

** The most liquid 3-year Korean treasury bond yield fell by 3.1 basis points to 1.433%, while the benchmark 10-year yield fell by 4.8 basis points to 1.540%. ($1 = 1,171.0700 won) (Reporting by Hayoung Choi; Editing by Rashmi Aich)

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