South Korean stocks closed 0.47 percent lower on Tuesday due to rising uncertainties over the eurozone following Italy’s election, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index moved down 9.51 points to 2,000.01. Trading volume was moderate at 422.2 million shares worth 3.5 trillion won ($3.22 billion) with losers outpacing gainers 479 to 336.

“Investor sentiment was dented by the outcome of Italy’s elections,” said Bae Sung-young, an analyst at Hyundai Securities Co. “Rising concerns over the automatic spending cuts by the U.S. also weighed down the market.”

In the overnight election, Italy’s center-left Democratic Party failed to win a majority of seats in the upper house.

Market watchers earlier predicted the center-left party would win a majority in both the upper and lower houses, establishing a stable government to tackle the prolonged fiscal crisis.

Foreigners offloaded a net 121.8 billion won worth of local shares, and institutional investors sold a net 14.3 billion won.

Retail investors scooped up a net 130.9 billion won. (Yonhap News)