Seoul shares seen lower as Europe's fiscal woes persist
SEOUL: Seoul shares are set to extend losses into a fourth successive session on Wednesday, with Europe's debt crisis persisting after Moody's downgraded Ireland's credit rating and fears mounted risks may spread to Spain and Italy.
"The European issue will continue to dominate but the market may attempt a small rebound as it's already been largely factored in," said Jung Seung-jae, a market analyst at Mirae Asset.
"The downside will be well supported by technical levels such as the 120-day moving average, which is hovering around 2,080 points."
The Korea Composite Stock Price Index (KOSPI) dropped for a third consecutive session on Tuesday to close at 2,109.73, its lowest close so far this month. It was the biggest daily percentage decline since May 26.
US stocks closed lower for a third straight day on Tuesday, as Europe's fiscal woes and a weak start to tech earnings gave investors little reason to buy even after recent losses.
Copyright Reuters, 2011
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