Korean Won Gains for First Day in Three on Singapore GDP, Greek Debt Sale
July 14 (Bloomberg) -- Intel Corp. Chief Financial Officer Stacy Smith talks with Bloomberg's Susan Li from Santa Clara, California, about the outlook for sales. Intel, the world's biggest chipmaker, reported record second-quarter sales and topped analysts' estimates with its forecast for this period, allaying concern that a rebound in technology spending is losing steam. Smith also discusses the company's investments in China. (Source: Bloomberg)
South Korea’s won strengthened for the first time in three days after Singapore reported better- than-expected economic growth and a debt sale by Greece eased concern Europe’s debt crisis will derail a global recovery.
Currencies and benchmark stock indexes advanced across the region’s developing economies after Singapore reported annualized growth of 26 percent for the second quarter, beating the 23 percent forecast in a Bloomberg survey of economists. Greek Finance Minister George Papaconstantinou said he was “satisfied” after the country sold Treasury bills at a lower rate than the country pays for European aid.
“Greece’s successful bond issuance will pressure the won to strengthen,” said Park Jae Sung, a currency dealer at Woori Investment & Securities. “That direction will gain momentum if stocks gain. But the market is cautious of possible intervention at 1,190 against the dollar.”
The won climbed 1 percent to 1,200 per dollar as of 9:42 a.m. in Seoul, after retreating 1.4 percent in the last two days, according to data compiled by Bloomberg. Park forecast the won will trade between 1,190 and 1,200 today.
The Kospi index rose 1.3 percent, headed for a two-year high, as overseas investors bought more Korean shares than they sold for a fifth day. Equities were in demand after Intel Corp. reported record second-quarter sales and Posco, Asia’s third- largest steelmaker, said second-quarter profit almost tripled.
Singapore’s government today raised its 2010 economic growth forecast for the third time this year, predicting expansion of as much as 15 percent. Its previous prediction was for a maximum rate of 9 percent. South Korea last month boosted its 2010 estimate to 5.8 percent, from a December projection of 5 percent.
South Korea’s government bonds fell. The yield on the 3.75 percent note due June 2013 rose three basis points to 3.99 percent, the highest level in four months for a benchmark three- year note. A basis point is 0.01 percentage point.
To contact the reporters on this story: Frances Yoon in Seoul at fyoon2@bloomberg.net
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