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Seoul: Stocks slip on global growth worries, won flat

Tuesday, February 2, 2016 - 11:18
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[SEOUL] South Korean shares slipped on Tuesday as disappointing manufacturing data from the US and China dampened the outlook for global economic growth, sending oil prices lower.

The Korea Composite Stock Price Index (KOSPI) fell 0.4 per cent to 1,917.73 points as of 0238 GMT. Declining issues outnumbered advancing ones by 15-to-10.

"With a raft of sluggish US economic data indicating global economic slowdown, recent domestic exports and consumer price index (CPI) data also pressured the main board," said Kim Ye-eun, a stock analyst at LIG Investment & Securities.

South Korea's consumer inflation rose 0.8 per cent in January from a year earlier, down from a 1.3 per cent increase in December and the slowest rise since a 0.6 per cent gain in September last year, data showed earlier in the day.

Auto shares led declines, as Hyundai Motor Co slid 1.5 per cent while its affiliate Kia Motors Corp shed 2.6 per cent.

Meanwhile, the sub-index for textile & wear shares bucked trend, up 1 per cent with LF Corp rising 0.8 per cent and Hansae Co Ltd gaining 2 per cent.

Foreign investors sold a net 7.9 billion won (S$9.35 million) worth of KOSPI shares near mid-session, weighing on the index.

The South Korean won was in a tight range as investors were casting warys eye on the Reserve Bank of Australia's rate decision due later in the day at 0330 GMT.

The local currency was quoted at 1,201.1 per dollar, down 0.1 per cent from Monday's onshore close of 1,200.5.

March futures on three-year treasury bonds gained 0.04 points at 110.10.

REUTERS