South Korean stocks closed lower Monday, snapping a two-day winning streak, as major chipmakers declined, weighed down by investor concerns over possible new US tariffs on semiconductor imports. The won strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index lost 48.38 points, or 1.5 percent, to close at 3,177.28.
Trade volume was light at 319.72 million shares worth 8.77 trillion won ($6.33 billion), with decliners sharply beating gainers 697 to 198.
Foreigners sold a net 540.2 billion won worth of local shares, while individual and institutional investors purchased a net 357.5 billion won and 79 billion won, respectively.
Investor sentiment was dampened after US President Donald Trump said Friday (local time) he would announce new tariffs on imports of steel and semiconductor chips in the coming weeks.
Wall Street closed lower Friday, dragged down by losses in the tech sector. The S&P 500 fell 0.3 percent, while the tech-heavy Nasdaq composite dipped 0.4 percent. The South Korean market was closed on Friday for a public holiday.
Lee Kyung-min, an analyst at Daishin Securities, said Trump's latest announcement is unlikely to be a substantial negative factor, as the proposed tariffs appear aimed at encouraging the construction of domestic factories in the US.
"Semiconductor stocks have seen sharp gains recently, and rising market anxiety has led to profit-taking," he added.
In Seoul, major chip and tech shares closed sharply lower.
Among heavyweights, chip giant Samsung Electronics fell 2.23 percent to 70,000 won, and its rival SK hynix retreated 3.25 percent to 267,500 won. Leading battery maker LG Energy Solution decreased 2.79 percent to close at 383,000 won.
Bio shares also continued their downward trend.
Major pharmaceutical firms Samsung Biologics and Celltrion declined 0.48 percent and 1.2 percent to 1,028,000 won and 172,900 won, respectively.
Among gainers, defense giant Hanwha Aerospace went up 0.57 percent to close at 888,000 won after opening lower.
The local currency was quoted at 1,385 won against the greenback at 3:30 p.m., down 3 won from the previous session. (Yonhap)
