South Korean stocks closed 0.27 percent lower Thursday as election results renewed European debt concerns and caused U.S. stocks to fall in overnight trading, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI lost 5.36 points to 1,944.93, in the second straight session of decline.

Trading volume was light at 404 million shares worth 4.36 trillion won ($4.29 billion), with losers outpacing gainers 431 to 389.

U.S. stocks, which exert considerable influence on the KOSPI, retreated as newly elected governments in Europe hinted they may renege on fiscal austerity measures.

“The eurozone’s fiscal concerns have escalated following the French and Greek elections, and this weighed down the bourse,” said Lee Sang-jae, a senior economist at Hyundai Securities Co.

Investors are worried problems in countries such as Greece could affect other countries on the continent, he said, adding economic fundamentals in Spain needed to be monitored carefully.

Others, such as Han Chi-hwan, an analyst at Daewoo Securities Co., said the overall fallout from Greek’s troubles is not as severe as in the past, but there remains a need to follow developments in European stock markets.

Many industries surrendered ground, although individual gains were reported by companies in heavy industries, chemicals and electronics.

Market bellwether Samsung Electronics dropped 0.30 percent to 1,327,000 won with Kia Motors, South Korea’s second-largest carmaker, losing 1.24 percent to 79,800 won.

Leading steelmaker POSCO fell 0.91 percent to 381,500 won, with top auto parts maker Hyundai Mobis dropping 1.23 percent to 282,000 won.

Shinhan Financial Group and Samsung Life Insurance lost 0.24 percent and 1.93 percent, respectively, to 41,150 won and 96,600 won.

Top automaker Hyundai Motor closed flat at 250,000 won, while LG Chem, a leading manufacturer of rechargeable batteries, gained 0.52 percent to 288,000 won,

Hyundai Heavy Industries, the world’s largest shipmaker, added 1.34 percent to 264,000 won, while LG Electronics rose 1.92 percent to 74,500 won.

The local currency finished at 1,142.5 won to the greenback, down 2.1 won from Wednesday’s close, dealers said. 

(Yonhap News)