The South Korean won erased early gains to fall 1 percent versus the dollar on Tuesday and Seoul shares extended their gains after China's central bank devalued the yuan versus the dollar. The South Korean won was down 1 percent at 1,174.3 to the dollar as of 0251 GMT. The won touched a morning high of 1,155.7 and sharply fell to as low as 1,177.4, the lowest since June, 2012. China devalued the yuan, setting the mid-point for the yuan to 6.2298 against the dollar. "The local currency sharply slid per dollar as a proxy currency after the news, tracking the yuan," said Yuna Park, a foreign-exchange analyst at Dongbu Securities. On the local share market, the Korea Composite Stock Price Index (KOSPI) was up 0.3 percent at 2,009.60 points. Seoul shares gained as much as 0.9 percent to 2,021.81 points after the news from China. But shares cut gains as offshore investors turned to net sellers. Gainers outnumbered losers by 1.1 to 1. "Devaluation in the Chinese currency as a stimulus to bolster its economy also seems to be a momentum driver for local shares," said Cho Byung-hyun, a stock analyst at Yuanta Securities Korea. Lotte Group shares rose by midday as Chairman Shin Dong-bin said during the session the conglomerate would simplify its shareholding structure. Lotte Shopping Co Ltd and Lotte Confectionery Co Ltd jumped 7.6 percent and 9.1 percent, respectively. Chemical and refinery shares rose 1.8 percent after the oil prices rebounded sharply overnight. Refinery SK Innovation Co Ltd and S-Oil Corp gained 2 percent and 1.2 percent, respectively. Market heavyweight Samsung Electronics Co Ltd rose 2.1 percent. September futures on three-year treasury bonds were up 0.08 point at 109.37.
original source: http://www.reuters.com/article/2015/08/11/markets-southkorea-idUSL3N10M1HJ20150811
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