Seoul stocks dip to 2-month low amid COVID-19 resurgence fears

South Korean shares plunged by more than 2 percent Tuesday as investor sentiment turned sour amid the resurgence of new coronavirus infections in the country. The Korean won rose against the US dollar. 

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 59.25 points, or 2.46 percent, to close at 2,348.24, marking the steepest fall after June 15. 

Trading volume was high at about 898 million shares worth some 17.3 trillion won ($14.6 billion), with losers outnumbering gainers 827 to 66. 

Foreigners bought a net 71 billion won, while retail investors purchased a net 527 billion won. Institutions offloaded a net 478 billion won. 

"The spreading COVID-19 pushed down the KOSPI that has already been under valuation pressure," said Yuanta Securities Korea analyst Cho Byung-hyun. 

"Bio and related shares have shown relatively stronger gains, due to the coronavirus concerns," he added.  South Korea has reported a drastic surge in new COVID-19 infections since late last week. It added 246 new cases Tuesday, after reporting 197 on Monday and 279 on Sunday, a five-month high. 

Investor sentiment further weakened due to US-China political tensions and dim outlook for the additional US stimulus package, analysts said. 

Most large caps closed lower. 

Market bellwether Samsung Electronics added 0.69 percent to 58,400 won, while No. 2 chipmaker SK hynix lost 2.62 percent to 78,100 won. 

Top pharmaceutical company Samsung Biologics gained 0.25 percent to 802,000 won, and Celltrion shed 0.16 percent to 304,000 won. 

Internet portal giant Naver climbed 0.82 percent to 307,500 won, and Kakao, the operator of mobile messenger app Kakao Talk, surged 4.28 percent to 378,000 won. 

Leading chemical maker LG Chem dipped 1.43 percent to 690,000 won. 

Hyundai Motor, the country's largest automaker, sank 5.39 percent to 158,000 won, with top steelmaker POSCO losing 3.56 percent to 203,000 won.

 Cosmetics giant Amore Pacific plummeted 10.18 percent to 176,500 won, and top carrier Korean Air sank 6.41 percent to 18,250 won. 

Duty-free behemoth Shinsegae plunged 8.7 percent to 210,000 won, with its rival Hotel Shilla tumbling 9.25 percent to 71,600 won. 

The local currency closed at 1,183.70 won against the US dollar, up 0.90 won from the previous session's close. 

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.8 basis points to 0.810 percent, and the return on the benchmark five-year government bond slipped 2.6 basis points to 1.070 percent. (Yonhap)