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S. Korean stock market sees foreign capital outflow in August

2019-09-10 15:00

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SEOUL, Sept. 10 (Xinhua) -- South Korea's stock market saw a foreign capital outflow last month amid the global trade dispute and the ongoing trade spat between South Korea and Japan, central bank data showed Tuesday.

Foreign funds worth 1.95 billion U.S. dollars flowed out of the local stock market in August, according to the Bank of Korea (BOK).

It was attributable to the global trade dispute, which raised concern about the global economic slowdown, as well as the trade feud between Seoul and Tokyo.

South Korea and Japan removed each other last month from their respective trusted trading partners that are given preferential export treatments.

It started from Japan's tighter control in July over its export to South Korea of three materials vital to manufacture memory chips and display panels, the mainstay of the South Korean export.

Meanwhile, foreign capital worth 1.43 billion dollars flowed into the domestic bond market last month as the BOK lowered its benchmark interest rate from 1.75 percent to 1.50 percent in July.

Expectations still ran high for the BOK's additional rate cut by the end of this year amid the lingering concern about the trade disputes.

Daily volatility for the won/dollar exchange rate averaged 0.41 percent in August, up from 0.29 percent the previous month.

The daily average transaction of foreign currencies in the interbank market expanded 2.54 billion dollars over the month to 26.81 billion dollars in August.

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