Korean stocks closed lower Wednesday as investors sat on the sidelines ahead of the country's four-day holiday, analysts said. The local currency dropped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 9.7 points, or 0.49 percent, to 1,976.71. Trade volume came to 348.5 million shares worth 4.97 trillion won ($4.3 billion), with losers outpacing gainers 611 to 185.
Analysts said Seoul shares lost ground as investors refrained from making purchases as the country will celebrate Children's Day on Thursday and has an extra day off on Friday, which was implemented by the government seeking to revitalize local consumption.
The overnight losses on Wall Street also weighed down on investors' sentiment, analysts added. Overnight, the Dow Jones Industrial Average shed 0.78 percent to close at 17,750.91.
"The sluggish economic indicators from the United States and China can also spark volatility in the global financial market," said Lee Kyung-min, an analyst at Daishin Securities.
Overseas investors scooped up a net 171.4 billion won, while individuals also bought more shares than they sold at 297.5 billion won. Institutions offloaded a net 490 billion won.
Carmakers closed bearish, with No. 1 Hyundai Motor falling 2.46 percent to 139,000 won and its sister Kia Motors losing 1.37 percent to 46,900 won. Hyundai Mobis shed 0.19 percent to 259,000 won.
Mobile carriers also closed weaker, with leading SK Telecom falling 0.7 percent to 212,000 won and LG Uplus shed 2.64 percent to 11,050 won. No. 2 player KT remained unchanged from the previous session at 31,650 won.
Steelmakers were also losers, with top player POSCO falling 4.57 percent to 219,500 won, when Korea Zinc shed 2.32 percent at 484,500 won. Hyundai Steel lost 6.08 percent to 57,200 won.
Tech shares closed mostly weaker, with leading chipmaker SK hynix falling 3.62 percent and LG Display moving down 0.61 percent. Samsung Electronics, however, shot up 2.3 percent to 1,290,000 won.
Korea's won closed at 1,154.30 won against the greenback, down 14.1 won from the previous session. (Yonhap)
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