S.Korean shares hit two-month high on chipmaker boost

Round-up of South Korean financial markets:

** South Korean shares climbed on Tuesday for a third straight session to their highest levels in two months, supported by chipmakers, as weak economic data from the United States and China increased hopes of further stimulus measures.

** The Korean won weakened, while the benchmark bond yield dropped.

** The benchmark KOSPI KOSPI was up 13.70 points, or 0.54%, at 2,541.64, as of 0132 GMT. Earlier in the day, the index rose as much as 0.73% to its highest intraday level since June 13.

** Resuming trade after a public holiday on Monday, investors shrugged off China's weaker-than-expected economic data. In response to the unexpected slowdown, China's central bank had cut key lending rates.

** Amid recently improved market sentiment, investors are interpreting the U.S. and China's economic slowdown as slower monetary tightening and more stimulus policies in respective countries, said Park Kwang-nam, analyst at Mirae Asset Securities.

** Leading gains in the index were heavyweight chipmakers with Samsung Electronics 005930 rising 1.50% and SK Hynix 000660 jumping 4.39%.

** Auto-parts maker Hyundai Mobis 012330 dropped 5.96% on a report that the affiliate of Hyundai Motor plans to separate its modules and key parts businesses into new units.

** Foreigners were net sellers of 10.9 billion won ($8.32 million) worth of shares on the main board.

** The won was quoted at 1,310.1 per dollar on the onshore settlement platform USDKRW, 0.59% lower than its previous close at 1,302.4.

** In offshore trading, the won USDKRW was quoted at 1,309.5 per dollar, up 0.1% from the previous day, while in non-deliverable forward trading its one-month contract (KRW1MNDFOR=) was quoted at 1,308.3.

** In money and debt markets, September futures on three-year treasury bonds (KTBc1) rose 0.17 point to 105.26.

** The most liquid 3-year Korean treasury bond yield fell by 6.2 basis points to 3.128%, while the benchmark 10-year yield dropped 9.1 basis points to 3.212%.

($1 = 1,309.9000 won)