Seoul stocks end 1 pct down on correction fears

(ATTN: ADDS bond yields at bottom)
SEOUL, Aug. 31 (Yonhap) -- South Korean stocks closed 1 percent lower Monday as
recent falls in the Chinese market provoked worries about a possible correction,
analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 16.09 points to
end at 1,591.85. Volume was moderate at 436.6 million shares worth 6.4 trillion
won (US$5.12 billion) with losers outpacing winners 566 to 253.
"The trigger was an ongoing plunge in the Shanghai stocks, as the Chinese
government is expected to tighten its loose monetary policy," said Hwang Bin-ah,
a researcher at Samsung Securities. "The Seoul bourse will not be able to counter
China's market influence for the time being."
Financial shares led the overall losses as foreign investors sought to take
profits through massive sell-offs.
KB Financial Group, the parent company of top lender Kookmin Bank, dropped 3.20
percent to 51,500 won, and Woori Finance Holdings, the holding company for
second-largest lender Woori Bank, finished 1.75 percent lower to 14,050 won.
Gains by IT exporters and automakers, however, helped stem deeper losses.
Samsung Electronics rose 0.92 percent to 771,000 won, and top automaker Hyundai
Motor gained 1.92 percent to 106,000 won.
The local currency ended at 1,248.9 won to the U.S. dollar, down 4.5 won from
Friday's close, as foreign investors reduced their holdings of local shares,
dealers said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries climbed 0.03 percentage point to 4.38 percent and the
benchmark yield on five-year government bonds increased 0.03 percentage point to
4.91 percent.
ygkim@yna.co.kr
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