South Korean stocks fell 0.99 percent Wednesday amid mixed views on the weaker-than-expected United States jobs data for September, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 20.37 points to finish at 2,035.75. Trading volume was moderate at 363.1 million shares worth 5.29 trillion won ($4.9 billion), with losers outpacing gainers 514 to 306.
Analysts said Seoul shares lost ground as the U.S. jobs data for last month did not meet the market's estimate, potentially casting a cloud over the world's No. 1 economy down the road.
The decline, however, had a limited impact as the weak economic data may induce the U.S. Federal Reserve to delay the tapering of quantitative easing moves to next year, they added.
Monetary easing moves by an advanced country usually cause investors to set their sights on riskier emerging markets, while a reduction leads them to relocate their investments.
"It is likely that foreigners will continue to scoop up Seoul shares given that (the Fed) will not reduce its economic stimulus moves this year," said Lee Sang-jae, a researcher at Hyundai Securities Co.
Analysts added Wednesday's decline also came as institutions offloaded local shares due to rising concerns over a possible economic slowdown of China, the largest trading partner of South Korea.
Overseas investors became net buyers on the main bourse for the 39th consecutive trading session at a net 225.5 billion won, breaking its earlier record of 38 days set on Tuesday.
Institutions, on the other hand, offloaded more shares than they bought at 350 billion won. Individuals scooped up a net 127.5 billion won.
Tech shares closed bearish, with No. 1 Samsung Electronics moving down 0.89 percent to 1,442,000 won and top chipmaker SK hynix losing 0.31 percent to 32,500 won. Handset maker LG Electronics shed 0.85 percent to 69,700 won.
Shipbuilders also lost ground, with Hyundai Heavy Industries losing 4.12 percent to 267,500 won and Samsung Heavy Industries decreasing 3.75 percent to 41,050 won. Daewoo Shipbuilding & Marine Engineering slid 5.26 percent to 35,150 won.
Builders closed lower with Hyundai Engineering & Construction falling 1.78 percent to 60,600 won and Daelim Industrial losing 7.37 percent to 100,500 won. GS Engineering & Construction shed 1.32 percent to 37,500 won.
In contrast, logistics gathered ground, with Hyundai Merchant Marine rising 13.88 percent to 16,000 won and CJ Korea Express adding 0.11 percent to 91,900 won.
Mobile carriers traded mixed, with No. 1 SK Telecom rising 0.64 percent to 237,500 won while LG Uplus, the smallest player, falling 2.4 percent to 12,200 won. KT remained unchanged at 35,600 won.
The local currency ended at 1,055.80 won against the greenback, up 5 won from Tuesday's close as exporters continued to offload the dollar, dealers said. (Yonhap News)
