S.Korean shares, won gain as cenbank rate hike meets expectations

S.Korean shares, won gain as cenbank rate hike meets expectations

* KOSPI rises for second session

* Korean won strengthens against U.S. dollar

* South Korea benchmark bond yield rises

SEOUL, Aug 25 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares gained on Thursday for a second session, tracking overnight Wall Street strength, as the Bank of Korea met expectations with a normal-sized interest rate hike. The won strengthened, while the benchmark bond yield rose.

** The benchmark KOSPI .KS11 was up 16.38 points, or 0.67%, at 2,463.83 as of 0102 GMT, following a 0.50% rise in the previous session.

** South Korea's central bank raised its key interest rate by a quarter-percentage point as expected, in a bid to contain inflation and prevent capital outflows as the U.S. Federal Reserve gears up for more hikes.

** The bank upgraded this year's inflation forecast to 5.2% from 4.5%, which would be the fastest rate since 1998, and the next year's sharply up to 3.7% from 2.9%.

** The Bank of Korea's rate decision met expectations and eased monetary policy uncertainties for the market, said Huh Jae-hwan, analyst at Eugene Investment and Securities.

** Among heavyweights, technology giant Samsung Electronics 005930.KS rose 0.68% and peer SK Hynix 000660.KS inched up 0.11%, while battery maker LG Energy Solution 373220.KS gained 0.33%.

** Foreigners were net sellers of shares worth 47.2 billion won ($35.27 million) on the main board.

** The won was quoted at 1,338.0 per dollar on the onshore settlement platform KRW=KFTC , 0.31% higher than its previous close.

** In offshore trading, the won KRW= was quoted up 0.2% at 1,338.5 per dollar, while in non-deliverable forward trading its one-month contract KRW1MNDFOR= was quoted at 1,337.6.

** In money and debt markets, September futures on three-year treasury bonds KTBc1 fell 0.17 point to 104.49.

** The most liquid 3-year Korean treasury bond yield rose by 5.8 basis points to 3.367%, while the benchmark 10-year yield rose by 4.0 basis points to 3.473%. ($1 = 1,338.1600 won)
Reporting by Jihoon Lee; Editing by Rashmi Aich