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KOSPI in narrow range, foreigners net sellers

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Korean won up slightly against dollar

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South Korea benchmark bond yield inches up

SEOUL, Nov 29 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares traded flat on Tuesday, following a sharp drop in the previous session, as caution prevailed over China's COVID-19 outbreaks. The Korean won strengthened slightly, while the benchmark bond yield inched up.

** The benchmark KOSPI was up 2.43 points, or 0.10%, at 2,410.70 as of 0107 GMT.

** The index traded in a narrow range of -0.3% and +0.3% in morning trade, after closing Monday's session down 1.2%.

** "The local market is holding up better, after falling ahead of Wall Street in the previous session," said Eugene Investment and Securities' analyst Huh Jae-hwan. "The most important (factor) is COVID-19 in China."

** China reported 38,645 new COVID-19 infections for Monday, slightly fewer than 40,347 a day earlier.

** Meanwhile, South Korea's government and the central bank should pay greater focus on addressing any financial instability as the economy is headed for slower inflation, President Yoon Suk-yeol told Reuters.

** Among heavyweights, technology giant Samsung Electronics fell 0.33%, while peer SK Hynix gained 0.36% and battery maker LG Energy Solution added 0.36%.

** Korean Air and Asiana Airlines jumped 3.46% and 12.82%, respectively, after UK authorities said they might accept their merger.

** Of the total traded issues of 924, the number of advancing shares were 380.

** Foreigners were net sellers of shares worth 60.6 billion won ($45.26 million) on the main board.

** The won was quoted at 1,339.0 per dollar on the onshore settlement platform, 0.09% higher.

** In money and debt markets, December futures on three-year treasury bonds fell 0.02 point to 103.72.

** The most liquid three-year Korean treasury bond yield rose by 0.6 basis point to 3.676%, while the benchmark 10-year yield rose by 2.8 basis points to 3.638%. ($1 = 1,338.8800 won) (Reporting by Jihoon Lee; editing by Uttaresh.V)