SEOUL: The South Korean won joined regional peers in strengthening against the dollar by midday Wednesday, which could let it snap a six-day losing streak.
The won was up 0.6 percent at 1,105.7 per dollar as of 0301 GMT, compared with the previous close at 1,112.4. The won touched 1,104.2, its highest level since May 26.
The dollar was broadly weakened as the euro jumped on expectations Greece would reach a deal with its creditors and after German 10-year Bund yields had the biggest jump in about three years. “The won wouldn’t rise to below the 1,100 level today asinvestors were wary of intervention by foreign exchange authorities to check its appreciation to the yen,” said Yuna Park, an analyst at Dongbu Securities.
She said the won’s bullish tone slightly eased, as it was tracking the yen’s rise.
Seoul shares edged up on bargain hunting after a heavy sell-off the previous session, propped up by shipbuilders and refiners after oil prices rose on Tuesday.
The Korea Composite Stock Price Index (KOSPI) was up 0.3 percent at 2,084.96 points. Tuesday’s close was 2,078.64.
Overnight, oil prices rose, driven by a weak dollar and expectations U.S. crude supplies could have fallen last week for a fifth straight week.
In Korea’s share market, gains partly offset losses on Tuesday for stocks impacted by MERS, said Kim Yoon-seo, an analyst at KTB Investment & Securities. He added that some shares hit by Middle East Respiratory Syndrome (MERS) fell below
their fundamentals on Tuesday.Among those hurt by concern about tourism were Asiana
Airlines Inc and Korean Airlines Co Ltd. Early Wednesday, they rose 1.2 percent and 0.4 percent.
Hanatour Service Inc, down 8.9 percent a day earlier, was up 1.8 percent.
Amorepacific Corp, maker of cosmetic products popular with Chinese tourists, gained 2.4 percent. It shed 8.5 percent the two previous sessions.Shipbuilders outperformed, rising 2.7 percent.
Daewoo Shipbuilding & Marine Engineering Co Ltd rose 6.1 percent and Hanjin Heavy Industries & Construction by 4 percent.
Daewoo Shipbuilding & Marine Engineering rose after saying it won a roughly $1.8 billion order for 11 ultra-large container ships SK Innovation Co Ltd, a local refinery, climbed 2.6 percent.
June futures on three-year treasury bonds were down 0.05 points at 109.35.
