SEOUL: South Korean stocks shed 0.41 percent on Friday ahead of the release of a U.S. jobs report that could give hints to the Federal Reserve’s rate decision, although some bio shares helped erase some of the earlier losses, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 8.34 points to 2,041.07. Trading volume was light at 436.7 million shares worth 4.34 trillion won (US$3.8 billion), with losers far surpassing winners 552 to 260.
Analysts said a solid U.S. jobs report could give the Federal Reserve confidence to lift the key interest rate next month, which could dampen appetites for risky assets. The report is due later in the day.
“Investors fretted over the rising possibility of a U.S. rate hike, trying to lock in from recent surges,” Ma Ju-ok, an analyst at Kiwoom Securities, said. “Tech and shipbuilders, faced with downbeat business prospects, weighed down the benchmark index.”
Tech shares fell on expectations that the supply glut in dynamic random access memory (DRAM) would continue into the fourth quarter.
Tech giant Samsung Electronics edged down 0.3 percent to 1,338,000 won and SK hynix, the world’s second-largest chip maker, dipped 4.44 percent to 31,200 won.
Shipbuilders were depressed after logging massive deficits in the third quarter due to order cancellations and delayed construction schedules in offshore facilities.
