SEOUL: The South Korean won and stocks edged down early on Tuesday in thin year-end trade as broad dollar strength pressured the won and shares fell as foreigners took profits from the previous session's gains.
The won fell 0.2 percent to 1,097.8 against the dollar as of 0211 GMT, while the Korea Composite Stock Price Index (KOSPI) was down 0.1 percent at 1,940.70 points.
"The effects from last night's US housing data on the market are expected to be minimal, while players will hold tight ahead of economic indicators from the US later in the week," said Son Eun-jeong, a foreign exchange analyst at Woori Futures.
Son also said the won may weaken further in the session if authorities intervene to erase some of the won's gains against the Japanese yen to keep local exporters' price competitiveness against their Japanese peers intact.
The yen was down roughly 0.6 percent against the won in early trade as demand for the safe-haven Japanese currency was dampened by a rally in US stocks overnight.
Housing data from the US showed home resales tumbled to a six-month low in November after two straight months of strong increases.
The US will release revised third-quarter GDP growth data later this week, as well as measures of consumer spending and business spending.
Offshore investors net sold 74.9 billion Korean won ($68.23 million) worth of KOSPI shares near mid-session, weighing on the index.
Banks outperformed the index, up around 2 percent at midday as investors' anticipated over future dividend rises on the back of government measures pushed up the shares.
The Industrial Bank of Korea was up 3 percent while shares in Woori Bank rose 1.4 percent.
The KOSPI 200 benchmark of core stocks was down 0.1 percent, while the junior KOSDAQ also edged 0.1 percent lower.
March futures on three-year treasury bonds added 0.06 points to trade at 108.10.
original source: http://www.brecorder.com/top-news/1-front-top-news/212800-south-korea-won-stocks-edge-down-in-thin-year-end-trade-data-eyed.html