S.Korean stocks see biggest gain in a month on trade hopes

* KOSPI rises, foreigners net buyers

* Korean won strengthens against U.S. dollar

* South Korea benchmark bond yield rises

* For the midday report, please click

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

** South Korean shares closed 1.6% higher on Tuesday, their sharpest gain in nearly a month, after the United States and China indicated progress in their trade talks and daily COVID-19 infections in the country eased from their peaks.

** The benchmark KOSPI closed up 36.90 points, or 1.58%, at 2,366.73.

** Top U.S. and Chinese officials see progress on resolving issues over the Phase 1 trade deal reached in January and both sides are committed to the success of the agreement, the U.S. Trade Representative’s Office said.

** South Korea reported 280 new infections as of midnight Monday, a drop in daily new cases from 397 as of Saturday midnight.

** Meanwhile, the Bank of Korea is expected to keep interest rates on hold on Thursday as it weighs concerns about rising household debt and property prices.

** The market will need to see the downward revision of BOK’s economic projection, possibilities of toughening social-distancing rules and U.S. Federal Reserve Chair Jerome Powell’s remarks from the Jackson Hole symposium, said Lee Kyoung-min, Daishin Securities’ analyst.

** Foreigners were net buyers of 151.8 billion won ($128.04 million) worth of shares on the main board.

** The won ended at 1,185.1 per dollar on the onshore settlement platform, 0.34% higher than its previous close at 1,189.1.

** In offshore trading, the won was quoted at 1,185.6 per dollar, up 0.3% from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,185.6.

** In money and debt markets, September futures on three-year treasury bonds rose 0.01 points to 112.18.

** The most liquid 3-year Korean treasury bond yield rose by 0.3 basis point to 0.827%, while the benchmark 10-year yield rose by 1.2 basis points to 1.389%. ($1 = 1,185.5900 won) (Reporting by Joori Roh; editing by Uttaresh.V)