Won Depressed US Dollar, Kospi Index Turned Weak Down

The Kospi index closed down 0.05% or 1.27 points to 2,468.88, although it opened with a gain of 0.19% or 4.63 points to a level of 2,474.78. On Monday trading (11/06/2018), the Kospi index closed up 0.76% or 18.57 points to 2,470.15.
A total of 253 stocks rose, 463 shares weakened, and 54 shares stagnated from 770 shares traded on the Kospi index in late trading today.

A number of stocks watched sustained a boost to Kospi’s weakness, including KR Motors Co. Ltd. (-2.99%) and Kyungbang Ltd. (-1.09%).

On the other hand, SK Chemicals Co. Ltd. Which rose 0.33%, Cockoo Homesys Co. Ltd. That was up 0.43%, and Woori Bank, which gained 1.3%, was in a row of stocks that helped keep the Kospi index down further.]

Meanwhile, the won exchange rate ended down 0.18% or 1.97 points at 1,077.11, depressed the strength of the US dollar as investors focussed on three major central bank meetings this week and the result of a historic meeting between US President Donald Trump and leaders North Korea’s Kim Jong-un.

Reported by Bloomberg, investors are preparing themselves for geopolitical developments with Trump and Kim expressing optimism that the US and North Korea can find a way to peace.

After the summit ends, market participants will shift their focus to the views of the world’s largest central banks. The Federal Reserve is expected to raise interest rates, while European Central Bank officials are ready to hold formal talks to end its bond buying program. The Bank of Japan held a meeting on Friday, with no changes to the policy expected.

“From an investor point of view, we do not have big expectations for this meeting because it is very difficult to predict what will happen,” said Goohoon Kwon, co-head of Korean research and senior Asian economist at Goldman Sachs Group Inc., as quoted by Bloomberg.

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