SEOUL: South Korean stocks hit a seven-month low on Wednesday as investors were spooked by China’s stock market rout that spawned fresh worries about the world’s No. 2 economy, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 16.88 points, or 0.86 percent, to close at 1,939.38, its lowest level since Jan. 21. Trading volume was moderate at 497 million shares worth 7.1 trillion won (US$6 billion), with decliners far outpacing advancers 700 to 148.
Analysts said investors shied away from risky assets, disheartened by China’s stock market turmoil and concerns over the health of its economy as well as a potential U.S. interest rate hike.
The Shanghai Composite Index fell more than 4 percent on Wednesday after plunging 6.15 percent a day earlier, sparking renewed worries about the performance of the Chinese economy.
“Investors remain cautious ahead of the Federal Open Market Committee (FOMC) meeting for September,” said Kim Hyo-jin, an analyst at Kyobo Securities Co. “But we must also remember that the impact of foreseen risks is limited.”
Foreigners continued selling for the 10th consecutive session, dumping a net 25.6 billion won. Individuals sold off a net 186.6 billion won, while institutions bought a net 168.2 billion won.
