South Korean stocks retreated 0.6 percent on Monday as investors sat on the sidelines while keeping a wary eye on stalled spending cut talks in the United States. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 11.98 points to close at 1,983.06. Trading volume was moderate at 360.4 million shares worth 4.19 trillion won ($3.90 billion) with decliners outpacing gainers 497 to 309.
“Investors felt more pressure as the deadline for an agreement over the fiscal spending cut is getting closer,” said Han Beom-ho, an analyst at Shinhan Investment Corp.
The U.S. Congress has until Friday to work out to what extent it will carry out fiscal budget cuts to avoid a sudden blow to the economy.
The due date, however, is unlikely to be met, Han said, which indicates the U.S. fiscal cliff concern will continue through early next year.
The KOSPI widened losses into the later session, driven by automobiles and construction companies. No. 1 automaker Hyundai Motor and its affiliate Kia Motors dropped 1.96 percent to 225,000 won and 3.58 percent to 59,200 won, respectively. Major builder GS Engineering & Construction slid 2.1 percent to 55,900 won.
Flat panel giant LG Display slumped 2.84 percent to 30,800 won, following media reports late last week its rival Samsung Display sued the company in Seoul, accusing it of patent violations on its liquid crystal display technologies. (Yonhap News)
