Shares fall on China slowdown

South Korean stocks closed 0.81 percent lower Monday on persistent eurozone concerns and China’s economic slowdown, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI lost 16.28 points to close at 1,992.63. Trading volume was moderate at 445 million shares worth 3.84 trillion won ($3.37 billion), with losers outpacing gainers 470 to 343.

The drop came after the bellwether stock market index regained the psychologically important 2,000-point mark on Friday.

“Eurozone woes fueled by Spain’s renewed debt problems weighed down the market and may have caused investors to take a wait-and-see position,” said Seo Dong-pil, an analyst at Hana Daetoo Securities.

Uncertainties related to recent U.S. economic data and worries surrounding the slowdown in China’s growth further affected the market as well, he said. Latest assessment showed China’s economy may had advanced 8.1 percent in the first quarter, below the 8.3 percent gains initially predicted by investment bankers.

Shares of automakers moved up, although electronics, steel and shipbuilding lost ground.

Market bellwether Samsung Electronics shed 0.71 percent to close at 1,259,000 won with LG Electronics, the country’s leading home appliance maker, falling 2.19 percent to end at 76,000 won.

Leading steelmaker POSCO lost 0.91 percent to close at 381,000 won. with Hyundai Steel declining 1.38 percent to end at 107,000 won.

Hyundai Heavy Industries, the world’s largest shipmaker, fell 0.81 percent to 307,500 won, with LG Chem, losing 2.03 percent to 362,000 won.

Hyundai Engineering & Construction was also down 1.67 percent to finish at 76,500 won.

Hyundai Motor, the country’s largest carmaker, moved up 1.94 percent to 263,000 won with its affiliate Kia Motors gaining 0.64 percent to 79,100 won.

The local currency finished at 1,138.5 won to the greenback, down 3.7 won from Friday’s close, dealers said.
 

(Yonhap News)