South Korean stocks sank 1.52 percent Wednesday as lingering uncertainties on monetary policies of major economies made investors jittery, analysts said. The local currency gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index retreated 30.32 points to close at 1,959.19. Trading volume was moderate at 326.3 million shares worth 3.93 trillion won ($3.49 billion) with decliners far outpacing gainers 644 to 178.

“With the U.S. talking about tapering its quantitative easing ahead of a European Central Bank policy meeting on Friday, investors got unnerved by market instability,” said Lee Kyung-min, an analyst at Woori Investment & Securities Co.

The Beige Book to be released by the U.S. Federal Reserve on Thursday, local time, is another factor that keeps investors cautious of making risky bets, Lee added.

Foreigners and institutions dumped shares, bringing down the KOSPI, but offshore investors turned to net buyers right before the market closed, snapping up a net 2.98 billion won. Institutions unloaded 65.2 billion won.

Most stocks finished in negative territory, with auto-related manufacturers and air carriers leading the decline. No. 1 carmaker Hyundai Motor slid 2.09 percent to 210,500 won with its auto parts-making affiliate Hyundai Mobis falling 2.64 percent to 276,500 won. Leading air carrier Korean Air Lines tumbled 4.79 percent to 33,800 won. (Yonhap News)