S.Korea won up on stock-linked deals, trade data

SEOUL, Nov 23 - The South Korean won wiped out early losses to turn higher on Monday, with foreign equity investors seen unloading dollars to settle heavy buying of local shares made late last week.

Stong preliminary trade data and a bullish 2010 economic outlook also set a positive tone for the local currency, despite the dollar's gain in other regions on investors' growing appetite for safer assets.

Dealers suspected a big chunk of the dollar selling on the day may have come from Banc of America-Merrill Lynch <BAC.N>, which is believed to have picked up a large amount of local stocks last Thursday.

Merrill Lynch declined to comment.

The won <KRW=> was quoted at 1,154.7/6.7 per dollar, compared with Friday's domestic close <KRW=KFTC> of 1,157.9.

Foreign investors snapped up a net 651 billion won worth of shares on the domestic bourse last Thursday, their biggest daily purchase in two months. Seoul shares <.KS11> edged down 0.10 percent.

South Korea's exports rose 29 percent in the first 20 days of November from a year earlier, producing a trade surplus of $960 million, according to preliminary customs office data. [ID:nSEO303518]

South Korea's top state-run research agency called on Sunday for a gradual exit from emergency policy measures, predicting the economy would grow in 2010 at its fastest pace in eight years. [ID:nSP472949]

((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net))

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