Seoul stocks to move in tight range next week amid trade uncertainties

SEOUL, Dec. 7 (Yonhap) -- Seoul stocks are set to move in a tight range next week as investors will keep a close eye on whether the United States and China reach a trade deal, staving off concerns over new U.S. tariffs scheduled to be imposed on Chinese goods, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 1 percent to close at 2,081.85 on Friday, snapping its three-day losing streak helped by foreign buying.

Foreigners turned net buyers of 43 billion won (US$36 million) worth of stocks after dumping local stocks in the past 21 consecutive sessions through Thursday.

"In the coming week, investors are shifting their focus to whether the two sides will continue talks after the U.S. postpones imposition of planned tariffs on Chinese goods (on Dec. 15) or if they reach a deal before the deadline," Noh Dong-kil, an analyst at NH Investment & Securities Co., said.

Investors appear to be sticking to hopes for a phase-one deal between the world's two biggest economies within this year, while at the same time remaining cautious due to U.S. President Donald Trump's contradictory comments about the negotiations, analysts said.

Trump said Wednesday (local time) that negotiations with China are "moving along well" in a reversal from his earlier comments that he had "no deadline" and doesn't mind waiting another year before striking a deal with China.

Brokerages expected the KOSPI index to trade between 2,050 points and 2,140 points next week.

If any clear clues of a breakthrough in the U.S.-China trade talks come up before the deadline, investor appetite for risky assets will buoy the local stock market, analysts said.

kyongae.choi@yna.co.kr
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