South Korean stocks closed 0.24 percent lower on Tuesday as weak Chinese trade data spawned renewed concerns over a slowdown in the world's second-largest economy. The local currency gained ground against the U.S. dollar, snapping a four-day losing streak.

The benchmark Korea Composite Stock Price Index shed 4.54 points to 1,878.68. Trading volume was light at 385.3 million shares worth 4.7 trillion won ($3.9 billion), with decliners outnumbering gainers 580 to 237.

Foreigners remained net sellers for a 24th consecutive session, dumping a net 250.5 billion won worth of local shares, while institutions bought a net 177.3 billion won.

"Rising Chinese demand for cosmetics and retailers had driven up the related stocks. Those stocks have been most favorite picks for investors," said Kim Hyung-ryul, a senior analyst from Kyobo Securities Co. "But as China's economy has been slowing down, investors are now adjusting their investment portfolios, removing cosmetics and other consumer goods shares from their baskets."

China's outbound shipments contracted 5.5 percent in August from a year earlier, with imports also tumbling at a sharper than expected rate of 14 percent, indicating that the world's No. 2 economy is suffering a decline in demand.

Although the figures were roughly in line with market projections, they still cast concerns that the Chinese economy has entered a downside cycle.

AmorePacific, the country's largest cosmetics company, slumped 3.32 percent to 320,500 won and LG Household & Healthcare retreated 2.14 percent to 733,000 won.

Leading discount chain and department store operator Lotte Shopping slid 4.28 percent to 268,500 won and Shinsegae dropped 1.93 percent to 228,500 won.

Pharmaceutical shares went south, with Hanmi Science diving 15.11 percent to 118,000 won and Yuhan Corp. sinking 3.7 percent to 234,500 won.

Auto shares finished bullish on the back of a weaker won, with industry leader Hyundai Motor adding 2.96 percent to 156,000 won and its sister Kia Motors gaining 1.61 percent to 50,600 won.

The local currency closed at 1,200.9 won against the U.S. dollar, up 2.8 won from Friday's close, rebounding from a five-year low in the previous session.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys rose 1.7 basis points to 1.668 percent, and the return on the benchmark five-year government bonds gained 1.1 basis points to 1.853 percent. (Yonhap)