Seoul shares down 0.58 percent on tech loss

Korean stocks slipped 0.58 percent on Friday, led by a sharp fall in tech shares, analysts said. The local currency edged down against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 11.37 points to 1,946.54. Trading volume was moderate at 368.3 million shares worth 4.7 trillion won ($4.1 billion), with decliners outnumbering gainers 406 to 390.

"A slump in Samsung Electronics shares weighed down the KOSPI amid rumors asset firms are cutting back their stakes for profit-taking and concerns over the iPhone 5 release," said Lim Dong-lak, an analyst at Hanyang Securities Co.

"But (the decline) is likely to be temporary. Overall external conditions, such as U.S. housing data, were favorable," said Lim.

Market bellwether Samsung Electronics dropped 3.72 percent to 1,295,00 won. Other tech issues closed mixed. LG Electronics lost 2.42 percent to 64,600 won, but LG Display jumped 2.47 percent to 27,000 won.

Korea Aerospace Industries slumped 3.09 percent to 26,700 won following Korean Air's solo bid for a stake in the aircraft maker.

Korean Air also fell 2.68 percent to 48,950 won.

In contrast, oil refiners closed higher as stimulus hopes drove up global oil prices. Top player SK Innovation added 1.47 percent to 172,000 won.

Kumho Tire, the country's No. 2 tire maker, closed up 3.63 percent at 15,700 won after its labor union called off a strike after just one day.

The local currency ended at 1,134.3 won against the greenback, down 0.3 won from Thursday's close, as the U.S. unit strengthened amid waning hopes for a third round of quantitative easing.

(Yonhap News)