* KOSPI slips 1%, foreigners net buyers * Korean won weakens versus U.S. dollar * South Korea benchmark bond yield falls SEOUL, Jan 6 (Reuters) - Round-up of South Korean financial markets: South Korean stocks dived 1% on Monday as an exchange of threats between the United States and Iran stoked geopolitical uncertainty and demand for safe-haven assets. The Korean won and the benchmark bond yield also weakened. ** As of 0153 GMT, the Seoul stock market's main KOSPI was down 22.25 points, or 1.02%, at 2,154.21. Earlier in the session, the index dropped 1.06% to its lowest since Dec. 12, 2019. ** Iraq's parliament called on Sunday for U.S. and other foreign troops to leave amid a growing backlash against the U.S. killing of a top Iranian military commander that has heightened fears of a wider Middle East conflict. ** This prompted U.S. President Donald Trump to threaten "major retaliation" if Tehran were to retaliate. Trump had also threatened sanctions against Baghdad after Iraq's parliament called on U.S. troops to leave the country. ** Oil prices rose sharply over the uncertainties from the Middle East, weighing down on business expenses, said Huh Jae-hwan, an analyst at Eugene Investment. In addition, sluggish U.S. manufacturing sector data also negatively affected the local markets, he added. ** The U.S. manufacturing sector fell into its deepest slump in more than a decade in December as the U.S.-China trade war kept a lid on factory output, orders and employment, although the long-awaited Phase 1 trade deal between Washington and Beijing could limit further downside. ** Foreigners were net buyers of 5.4 billion won ($4.63 million) worth of shares on the main board. ** The won was quoted at 1,168.0 per dollar on the onshore settlement platform , 0.08% lower than its previous close at 1,167.1. ** In offshore trading, the won was quoted at 1,167.5 per U.S. dollar, down 0.2% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,166.4 per dollar. ** MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.48%, after U.S. stocks closed lower on Friday . Japanese stocks fell more than 2%. ** The KOSPI dropped 1.69% so far this year, but gained 1.1% in the previous 30 trading sessions. ** The trading volume during the session in the KOSPI index was 258.63 million shares and, of the total traded issues of 905, the number of advancing shares was 86. ** The won lost 1% against the dollar so far this year. ** In money and debt markets, March futures on three-year treasury bonds rose 0.06 points to 110.89, while the 3-month Certificate of Deposit rate was quoted at 1.53%. ** The most liquid 3-year Korean treasury bond yield rose by 1.2 basis points to 1.281%, while the benchmark 10-year yield fell 2.3 basis points to 1.529%. ($1 = 1,167.4900 won) (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)
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