Seoul stocks down for 8th day on disappointing Chinese economic data

South Korean stocks retreated for an eighth straight session Tuesday as disappointing Chinese economic data raised concerns about a slowdown in global economic recovery. The Korean Won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) slumped 28.2 points, or 0.89 percent, to close at 3,143.09 points.

Trading volume was high at about 680 million shares worth some 21.9 trillion won ($18.6 billion), with losers outnumbering gainers 786 to 117.

Foreigners sold a net 417 billion won, and institutions offloaded a net 133 billion won, while retail investors bought 589 billion won.

The key stock index opened with mild gains as the country's two largest chipmakers rose after tumbling on pessimism about a future price fall of DRAMs.

Gains by financial and bank stocks, fueled by hopes of a steady economic rebound, lifted the stock index.

But stocks lost ground in the late morning as foreign and institutional selling increased on slower-than-expected growth in July in China.

Chinese retail and industrial output gauges in July came short of market consensus. Overnight, the sluggish U.S. Empire State Manufacturing Index added to the investor worries that the economic rebound may lose its momentum.

Investors are seeking clues on the Fed's plan of tapering its stimulus from an address by Federal Reserve Chairman Jerome Powell, set for Tuesday (US time).

"Investors seem to be worried about the future chip demand and possibilities of China's economic slowdown," Eugene Investment & Securities analyst Huh Jae-hwan said. "We are expecting that the Federal Open Market Committee minutes would stay close to the market consensus, without causing big ripples in the market," he added.

In Seoul, market kingpin Samsung Electronics lost 0.27 percent to 74,200 won, and No. 2 chipmaker SK hynix closed unchanged at 101,500 won.

Internet portal operator Naver decreased 1.83 percent to 428,500 won, while pharmaceutical giant Samsung Biologics moved up 2.95 percent to 1,012,000 won.

Top automaker Hyundai Motor lost 1.84 percent to 213,000 won, and leading chemical firm LG Chem retreated 0.33 percent to 893,000 won. The No. 1 bank, Kakao Bank, surged 14.1 percent to 87,400 won.

The local currency closed at 1,176.3 won to the US dollar, down 7.3 won from the previous session's close. (Yonhap)