Seoul: Won, shares fall after China weakens yuan guidance

[SEOUL] The South Korean won slid to a near four-year low per dollar on Wednesday, while shares dropped to their lowest in six months after China's central bank weakened the yuan's official mid-point for a second day.

The won closed local trade down 1 per cent to 1,190.8 against the dollar after hitting a session low of 1,195.5, its weakest since Oct 4, 2011.

On the Seoul stock market, the benchmark Korea Composite Stock Price Index (KOSPI) ended down 0.6 per cent at 1,975.47 points. At one point, the index fell as much as 1.9 per cent to 1,948.91, the lowest since Feb 13.

Foreigners were net sellers for a sixth straight session, offloading a net 607.6 billion won (S$721.5 million) worth of shares in the main board during the period, preliminary data showed.

REUTERS