SEOUL: Seoul shares fell on Monday as investor wariness of possible negative earnings surprises by local firms this month compounded renewed fears about the euro zone crisis.
"I think investors have little confidence that a practical debt crisis solution will be found during at this week's EU meetings, and a new source of worry is Korean companies falling short of expectations when fourth quarter results are released later in the month," said Rhoo Yong-suk, a senior analyst at Hyundai Securities.
"Breaching the 1,850 barrier is proving to be psychologically burdensome, and unstable oil prices are threatening to derail fragile economic recovery efforts," he added.
The Korea Composite Stock Price Index (KOSPI) was down 1.42 percent at 1,816.91 points as of 0215 GMT.
US data released on Friday showing accelerated employment growth and three-year low jobless rates strongly hinted at signs of a rebound in the world's largest economy, but provided little reassurance to jittery investors worried that recovery efforts could be undermined by the euro zone debt crisis.
Morning losses were led by banks, seen as most exposed to any turbulence in Europe's financial system. Hana Financial Group was down 3.86 percent while Shinhan Financial Group slid 2.65 percent.
Large-cap issues lagged across the board. Samsung Electronics Co Ltd, which shed 2.31 percent, POSCO dipped 2.2 percent and Hyundai Heavy Industries fell 3.06 percent.
Despite a broad retreat in automobile shares, Ssangyong Motor Co soared for a second straight session, climbing 14.89 percent after its parent firm Mahindra and Mahindra Ltd unveiled ambitious goals for the company at the Delhi Auto Expo.
Offshore investors dumped a net 70.5 billion won ($60.6 million) worth of shares while institutional investors sold a net 22.3 billion won worth.
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