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Seoul: Shares edge lower on rising Sino-US tensions, grim economic outlook
[SEOUL] South Korean shares edged lower on Thursday, after investors' sentiment dampened on escalating US-China tensions over Hong Kong and a grim economic outlook by the Bank of Korea.
The Seoul stock market's benchmark Kospi closed down 2.66 points, or 0.13 per cent, at 2,028.54.
US Secretary of State Mike Pompeo told Congress on Wednesday that Hong Kong no longer qualifies for its special status under US law, after China's plan for new security legislation triggered protests in the territory.
The South Korean central bank cut interest rates to a record low on Thursday as it warned the Covid-19 pandemic would be worse for Asia's fourth-largest economy than the 2008 global financial crisis.
The sentiment weakened after the central bank's stimulus plans turned out to be less aggressive than market expectations, said Huh Jae-hwan, an analyst at Eugene Investment & Securities.
Foreigners were net buyers of US$34.47 million worth of shares on the main board.