SEOUL: South Korean stocks ended lower on Tuesday as investor sentiment was dampened by China’s bleak manufacturing data and disappointing local export figures. The South Korean won firmed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index dropped 1.4 percent, or 27.27 points, to 1,914.22. Trading volume was light at 320 million shares worth 4.75 trillion won ($4.05 billion), with losers far surpassing gainers 600 to 223.
An official index of Chinese manufacturing fell to a three-year low last month in another sign of slower-than-expected growth, putting downside risks after a brief relief following a market crash in August.
“Investors are taking a wait-and-approach before the U.S. Federal Reserve decides the timing of an interest rate hike, digesting data from China to gauge its impact on the global economy,” Seo Myung-chan, a researcher at Kiwoom Securities said.
“The local equity market is expected to fluctuate without a clear direction until uncertainties in the U.S. and China are cleared.”
Institutions dumped a net 277.1 billion won worth of shares and foreigners offloaded a net 6.86 billion won to continue the selling spree for 19th consecutive day. Retail investors bought a net 234.7 billion won.
Blue-chip stocks slumped as a slowdown in Chinese economy, the nation’s top export destination, dashed hope for earnings improvement. South Korea’s exports shrank at the fastest pace in six years in August as global trade remained in the doldrums amid slumping oil prices.
Top automaker Hyundai Motor shed 1.68 percent to 146,500 won, and SK hynix decreased 3.91 percent to 34,400 won.
Amore Pacific, the nation’s leading cosmetics maker, lost 3.96 percent to 363,500 won.
