South Korea’s three-year bond yield retreated from a five-month high and the won was steady as investors waited for clues on when the U.S. will start to trim stimulus that has inflated emerging-market asset prices.
South Korea’s bonds fell, pushing the three-year yield to the highest level since June, as data showing the economy is improving increased demand for riskier assets. The won climbed for the second day.
Emerging-market stocks rose, paring the first monthly drop since August, as Petroleo Brasileiro SA to Cnooc Ltd. drove gains in energy producers. South Korea’s won rose for a fifth month in the longest rally since 2007.
South Korea’s won is set to advance for the fifth straight month, the longest rally since 2007, on optimism the nation will attract foreign funds as the economy heads for the fastest growth since 2010. Government bonds fell.
South Korea’s growth is poised to accelerate to the fastest since 2010, even as the central bank warned the won’s climb to the highest against the yen in more than five years threatens to damp exporters’ profits.