S.Korea won, stocks regain footing after N.Korea’s ICBM test

* ICBM test alone will have limited impact on markets –
analyst
* Investors turn focus to Fed minutes, G20 summit

SEOUL, July 5 (Reuters) – The South Korean won and
shares steadied early on Wednesday, a day after North Korea
test-fired an intercontinental ballistic missile (ICBM) and put
the spotlight on growing tensions in the region.
North Korea said its newly-developed ICBM can carry a large
nuclear warhead, triggering a call by Washington for global
action to hold Pyongyang accountable for its pursuit of nuclear
weapons.
The won was quoted at 1,148.9 to the dollar as of
0305 GMT, inching up 0.1 percent versus Tuesday’s close of
1,150.6. The currency slumped to more than 16-week lows on
Tuesday following heightened tensions on the Korean peninsula.
The Korea Composite Stock Price Index (KOSPI) was up
0.1 percent at 2,382.68 points, after faltering late on Tuesday
and closing in negative territory.
“North Korea’s success in ICBM test can have some pressure
since it means improvements in (the North’s) missile technology,
but the test alone will only have limited impact like any other
missiles launched before,” said Kim Doo-un, a foreign exchange
analyst at Hana Financial Investment.
Kim added that investors were likely to stay on the
sidelines until global events such as the U.S. Federal Reserve’s
policy meeting minutes and G20 summit, which could cause market
ructions, were out of the way.
Offshore investors were set to be net sellers and offloaded
62.7 billion won ($54.58 million) worth of KOSPI shares near
mid-session.
Shares of Amorepacific fell 2.6 percent on
forecast of weaker second-quarter earnings. Hyundai Motor
lost nearly 2 percent.
Advancers and decliners were roughly even at 381 to 379.
September futures on three-year treasury bonds were
unchanged at 109.21.

0305 GMT Prev close
Dollar/won 1,148.9 1,150.6
Yen/won 10.1673/35 10.1477
*KTB futures 109.21 109.21
KOSPI 2,382.68 2,380.52
* Front-month futures on three-year treasury bonds

(Reporting by Dahee Kim; Editing by Jacqueline Wong)

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