South Korean stocks fell to a one-month low Wednesday as investor sentiment was dampened by concerns over the Chinese economy and the Federal Reserve's aggressive monetary tightening policy. The local currency fell to a three-month low against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 45.23 points, or 1.76 percent, to close at 2,525.64, the fourth consecutive loss. It was the lowest level since July 10, when the KOSPI ended at 2,520.70.
Trading volume was moderate at 670.76 million shares worth 11.8 trillion won (US$8.83 billion), with losers outpacing gainers 776 to 135.
The index opened lower, tracking overnight U.S. losses, and had extended losses further.
Institutions and foreigners sold a net 360.58 billion won and 1.36 billion won worth of shares, respectively, while retail investors bought a net 330.33 billion won.
"The market is expected to come under downward pressure and face greater volatility for the time being due to external factors, including China's growth potential, risks of its property sector, and the U.S.' policy path to curb inflation," Daeshin Securities analyst Lee Kyung-min said.
Data showed that U.S. retail sales grew at a faster-than-expected rate of 0.7 percent in July, which could lead to the Fed's continued push for aggressive monetary tightening.
Latest Chinese data indicated its faltering economic recovery, and Beijing on Tuesday unexpectedly cut an interest rate to spur growth.
On the Seoul bourse, most top-cap shares lost ground, with battery shares falling sharply.
Market bellwether Samsung Electronics fell 0.45 percent to 67,000 won, and leading battery maker LG Energy Solution sank 2.95 percent to 526,000 won.
POSCO Holdings dropped 5.37 percent to 546,000 won, and Samsung SDI retreated 1.48 percent to 601,000 won. LG Chem tumbled 2.18 percent to 584,000 won.
But chip giant SK hynix grew 0.78 percent to 115,800 won.
Carmakers lost ground. Top automaker Hyundai Motor skidded 1.59 percent to 185,800 won, and its affiliate Kia slid 0.89 percent to 78,000 won.
Major bio firm Samsung Biologics went down 1.64 percent to 781,000 won, and Celltrion nosedived 5.39 percent to 145,700 won.
The local currency ended at 1,336.9 won against the U.S. dollar, down 6.0 won from the previous session's close. It is the lowest level since May 18, when the figure came to 1,334.2 won.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 3.5 basis points to 3.712 percent, and the return on the benchmark five-year government bond fell 2.9 basis points to 3.767 percent.
Source: Yonhap News Agency