* Won up as ECB signals tapering this autumn, pressuring dlr
* Tapering could result in money outflow from local markets
* Stocks wobble after 6-day rally
SEOUL, July 21 (Reuters) – The South Korean won edged
up early on Friday as a broad rally in the euro pressured the
dollar, after the European Central Bank President Mario Draghi
said tapering of its stimulus will be on the table for
discussion this autumn.
The won was quoted at 1,122.8 as of 0157 GMT, up
0.2 percent compared to Thursday’s close of 1,125.5.
“The won is now moving up, responding to dollar weakness but
further gains seem less likely as investors are aware that the
(ECB) tapering can somehow result in risk-off sentiment, driving
money out from the local markets,” said Jung Sung-yoon, a
foreign exchange analyst at Hyundai Futures.
Global financial markets have been buffeted over the past
few weeks on speculation over the timeline for the ECB to run
down its asset purchase programme, with signs the U.S. Federal
Reserve will take a more cautious approach to tightening policy
also keeping investors on their toes.
The won is likely to hold around current levels for the rest
of the day, said Jung.
South Korean shares wobbled in and out of the black as
investors stepped back after a six-day rally that was spurred by
optimism over domestic earnings and a generally positive outlook
for the global economy.
The Korea Composite Stock Price Index (KOSPI) stood
at 2,442.41 points.
Offshore investors were set to be net buyers of KOSPI
shares, purchasing 62.6 billion Korean won ($55.77 million)
worth near mid-session.
Most major financial companies rose on upbeat second-quarter
earnings guidance. KB Financial Group Inc rose
nearly 4 percent while Shinhan Financial Group Co Ltd
gained 3 percent.
LG Display , which suffered its biggest daily
percentage drop in nearly six years on Thursday, recovered a
little to rise by more than 1 percent.
The shares of LG Chemical rose as much as 3.7
Decliners outnumbered advancers were almost even.
September futures on three-year treasury bonds
gained 0.08 point to 109.31.
0157 GMT Prev close
Dollar/won 1,122.8 1,125.5
Yen/won 10.0232/86 10.0093
*KTB futures 109.31 109.23
KOSPI 2,442.41 2,441.84
* Front-month futures on three-year treasury bonds
(Reporting by Dahee Kim; Editing by Shri Navaratnam)