South Korean stocks dropped to a more than one-month low as fears mounted that the United States may face a double-dip recession. The Korea Composite Stock Price Index finished down 2.59 percent at 2,066.26, its worst session in more than two months.
KOSPI 200 September futures fell 8.6 points to 267.25 and the KOSPI 200 spot index slid 7.6 points to 267.80. The junior Kosdaq market finished down 1.14 percent at 531.91. Foreign investors sold a net 786 billion won ($748 million) worth of stocks, the highest level since May.
Blue chip exporters led falls. Samsung Electronics Co Ltd, the world's No 1 memory chip maker and the largest counter on the KOSPI, lost 2.2 percent. Hynix Semiconductor Inc slid 4.5 percent. Automakers also weighed on the day. Hyundai Motor Co, the country's top car maker, tumbled 4.5 percent, while Kia Motors Corp, the country's No 2 carmaker, fell 2.6 percent, extending falls in the previous session. Domestic retail stocks bucked the negative trend. Lotte Shopping Co Ltd climbed 1.4 percent and CJ O Shopping Co Ltd rose 4.6 percent.
"Lotte and CJ O Shopping have China operations and stronger Asian currencies will help their operations in the region, while the United States may struggle with a faltering economy," said Cha Jae-hoon, analyst at Dongbu Securities. Decliners outnumbered gainers by 719 to 145.
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