S.Korea stocks gain as country stops short of toughest virus rules

* KOSPI rises, foreigners net sellers

* Korean won inches up against U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

SEOUL, Aug 28 (Reuters) – Round-up of South Korean financial markets:

** South Korean shares ended higher on Friday, following gains in Wall Street and as the country’s extension of the current social distancing measures, instead of a toughening, eased worries about further economic fallout from the coronavirus. Both the won and the benchmark bond yield rose.

** The benchmark KOSPI closed up 9.35 points, or 0.40%, at 2,353.80. For the week, the index rose 2.14%, snapping a 4.27% fall in the previous week.

** South Korean authorities stopped short of shifting the country up to the highest level of social distancing measures on Friday, but instead extended the current Phase 2, despite recording another triple-digit increase in daily new coronavirus cases.

** The finance minister said on Thursday the government will consider drafting its fourth supplementary budget of this year should the economic fallout from the pandemic significantly worsen.

** A Reuters poll showed the nation’s exports likely shrunk for a sixth straight month in August, as effects from fewer working days outweighed a gradual recovery in global demand. Full month data is due on Sept. 1.

** Meanwhile, local financial markets shrugged off news that Japan’s Prime Minister Shinzo Abe is set to resign, but shares of some consumer brands that compete with Japanese manufacturers surged shortly after.

** Foreigners were net sellers of 229.4 billion won ($193.78 million) worth of shares on the main board.

** The won ended trading at 1,184.3 per dollar on the onshore settlement platform, 0.06% higher than its previous close, while it gained 0.17% on a weekly basis.

** In offshore trading, the won was quoted at 1,183.9 per dollar, up 0.3% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,183.9.

** In money and debt markets, September futures on three-year treasury bonds fell 0.13 points to 111.94.

** The most liquid 3-year Korean treasury bond yield rose by 4.1 basis points to 0.893%, while the benchmark 10-year yield rose by 6.9 basis points to 1.490%. ($1 = 1,183.7900 won) (Reporting by Joori Roh; Editing by Shailesh Kuber)

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