SEOUL: Seoul shares are likely to open higher on Tuesday as weaker-than-expected US factory activity data supported views the Federal Reserve will keep economic stimulus in place, while the yen's rising strength will likely support exporters.
"A weak set of data from the US eases earlier worries about premature reduction of Fed support," said Choi Un-sun, a market analyst at LIG Investment & Securities, adding that the Seoul share market will open in positive territory.
The US manufacturing sector contracted in May, driving activity to the lowest level in nearly four years, in the latest sign the economy is entering a soft patch.
Choi said exporters in the technology, auto and chemical sectors in particular will benefit from the Japanese yen's rising strength against the US dollar.
The dollar fell as low as 98.86 yen, its lowest since May 9.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
Comments
Comments are closed.