An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

Seoul stocks snapped their three-day winning streak to close over 0.7 percent lower Monday on renewed concerns of a trade war between the United States and China. The local currency fell to its lowest level in more than five months against the US dollar.

The benchmark Korea Composite Stock Price Index tumbled 26.05 points, or 0.72 percent, to close at 3,584.55.

Trade volume was moderate at 404.5 million shares worth 14.1 trillion won ($9.9 billion). Losers outnumbered gainers 595 to 272.

Foreigners and institutional investors were net sellers, each offloading 821.1 billion won and 447.8 billion won worth of stocks, respectively. Retail investors scooped up a net 1.2 trillion won.

The Kospi's decline was limited compared to Wall Street on Friday, after US President Donald Trump hinted at backing off from new China tariffs, said Lee Kyoung-min from Daishin Securities.

Trump had threatened to impose a 100 percent tariff on China on Friday (local time) in response to China announcing sweeping controls on rare earth exports.

"But the two countries could engage in a tug-of-war to increase their bargaining power before they meet at the negotiating table later this month, which could increase noise down the road," Lee said.

The two leaders had earlier agreed to meet at the Asia-Pacific Economic Cooperation summit slated for later this month in the southeastern city of Gyeongju.

In Seoul, most large-cap shares traded lower, with semiconductors leading the decline.

Market bellwether Samsung Electronics retreated 1.17 percent to 93,300 won, and its rival SK hyix fell 3.04 percent to 415,000 won.

Defense giant Hanwha Aerospace moved down 4.7 percent to 993,000 won, KB Financial Group dipped 1.06 percent to 111,600 won, and major portal operator Naver declined 1.87 percent to 262,500 won.

In contrast, metal shares gathered ground on anticipation the price of rare metals will rise following China's export curbs on critical minerals.

Korea Zinc, which supplies rare metals, such as indium, used in semiconductors and flat-panel displays, vaulted 19.48 percent to 1,153,000 won, and steelmaker Posco Holdings advanced 3.61 percent to 272,500 won.

The Korean won closed at 1,425.8 won against the US dollar, down 4.8 won from the previous session's close. It was the lowest level since April 29. (Yonhap)