South Korean stocks hit 1-month high on trade optimism

SEOUL: Round-up of South Korean financial markets:

** South Korean shares closed at a one-month high on Thursday as the United States and China agreed to hold trade talks next month, amid positive political developments in Hong Kong and Britain. The Korean won and the benchmark bond yield rose.

** The Seoul stock market's main KOSPI ended up 16.22 points, or 0.82%, to 2,004.75, after rising as much as 1.4%.

** China and the United States agreed to hold high-level trade talks in early October in Washington, China's commerce ministry said, amid fears that an escalating trade war could trigger a global economic recession.

** Hong Kong leader Carrie Lam withdrew an extradition bill on Wednesday that had triggered months of often violent protests in the Asian financial hub, adding to the risk-on sentiment.

** External uncertainties have eased, prompting strong net buying in IT shares by foreign investors, said Lee Young-gon, an analyst with Hana Financial Investment.

** Foreigners were net buyers of 187.1 billion won ($154.29 million) worth of shares on the main board.

** Samsung Electronics and its mobile phone parts suppliers in South Korea jumped as the company is set to launch its first foldable smartphone in the country.

** The won was quoted at 1,200.2 per dollar on the onshore settlement platform, 0.67% higher than its previous close at 1,208.2.

** In offshore trading, the won was quoted at 1,199.8 per U.S. dollar, up 0.3% from the previous day, while in non-deliverable forward trading its one-month contract  was quoted at 1,198.9 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan  was up 0.61%, after U.S. stocks climbed . Japanese stocks rose 2.12%.

** The KOSPI has fallen 1.78% so far this year, and lost 5.4% 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 in the KOSPI index  was 481.98 million shares and, of the total traded issues of 890, the number of advancing shares was 472.

** The won has lost 7.0% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds fell 0.10 points to 110.85, while the 3-month Certificate of Deposit rate was quoted at 1.50%.

** The most liquid 3-year Korean treasury bond yield rose by 2.0 basis points to 1.271%, while the benchmark 10-year yield rose by 3.3 basis points to 1.385%.