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Seoul shares down 0.34 pct on U.S. policy woes


South Korean stocks closed 0.34 percent lower Wednesday as market uncertainties grew before the release of the minutes of the U.S. Federal Open Market Committee's (FOMC) June meeting, analysts said. The local currency gained against the U.S. dollar.
  

The benchmark Korea Composite Stock Price Index (KOSPI) fell 6.19 points to finish at 1,824.16. Trading volume was low at 264.3 million shares worth 3.2 trillion won (US$2.8 billion) with losers outpacing gainers 521 to 276.
  
"Global investors are taking a wait-and-see approach on whether Fed Chairman Ben Bernanke will follow through with his remark made last month, or provide a sense of stability to the market," said Lee Sang-jae, a researcher at Hyundai Securities Co.   

The FOMC plans to release its minutes of the June meeting Wednesday (local time), which is anticipated to imply the U.S. central bank's future move in its quantitative easing.   

Bernanke said in June the U.S. central bank is likely to start slowing the pace of its $85 billion monthly bond purchase program this year as its economy is improving.
   
Analysts said the weaker-than-expected trade data from China also dented investors' sentiment here.
   
China's exports moved down 3.1 percent on-year in June to $174.3 billion, marking the first drop in 17 months, raising concerns over a possible slowdown in its economic growth down the road.
   
The world's No. 2 economy also saw its imports edge down 0.7 percent to $147.1 billion, posting a trade surplus of $27.1 billion. China is the biggest trading partner of South Korea.
  
Foreign investors offloaded more shares than they bought at a net 43.3 billion won. In contrast, individuals purchased a net 39.8 billion won and institutional investors bought a net 8.9 billion won.
   
Food makers lost ground on the gloomy outlook over the industry, with CJ Cheiljedang falling 1.12 percent to 266,000 won and Nongshim losing 3.61 percent to 253,500 won. Leading confectionery maker Orion plummeted 2.11 percent to 930,000 won.
   
Daewoo International, a leading trading company, plunged 4.52 percent to 32,750 won on media reports that prosecutors raided the firm's headquarters over an alleged tax evasion.
   
Builders also traded lower, with Hyundai Engineering & Construction losing 0.54 percent to 55,600 won and Daewoo Engineering & Construction moving down 0.73 percent to 6,760 won.

Daelim Industrial shed 1.6 percent to 80,100 won.
   
Carmakers closed higher, with Hyundai Motor adding 0.69 percent
to 219,000 won and Kia Motors rising 0.83 percent to 60,900 won. In
contrast, top auto parts maker Hyundai Mobis shed 2.95 percent to
246,500 won.
   
Tech shares traded mixed, with SK hyinx falling 3 percent to 27,500 won and LG Electronics losing 1.88 percent to 00,000 won. Market behemoth Samsung Electronics added 0.89 percent to 1,248,000 won.
   
The local currency ended at 1,135.80 won against the greenback, up 5.90 won from Tuesday's close, as exporters offloaded the U.S. dollar, dealers said.
   
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries edged down 0.05 percentage point to 2.94 percent and the return on the benchmark five-year government bonds also fell 0.05 percentage point to 3.24 percent.  (Yonhap News)

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