SEOUL: Seoul shares inched lower Wednesday morning after roaming within a narrow range, as stiff technical resistance near the psychologically significant 1,900 level bore down on positive sentiment.
"Foreign investors are continuing to buy shares despite recent setbacks in Europe, a possible sign the liquidity crunch facing banks is easing as the European Central Bank's recent injection of cheap loans bear fruit," said Kim Byung-yeon, a market analyst at Woori Investment & Securities.
"Markets are going through a brief pause after yesterday's hefty gains, but sentiment will face a key challenge when Greek debt talks resume later today."
The Korea Composite Stock Price Index edged 0.15 percent lower to 1,889.96 points as of 0230 GMT.
Risk-averse sentiment was also tempered by data showing better-than-expected Chinese GDP growth, strong German business sentiment and forecast-beating US manufacturing activity.
But nerves will be tested once more as investors await the results of a debt auction in Portugal and the resumption of Greece's dialogue on a swap deal with private bondholders to avoid an unruly default.
Falls were led by automakers, with Kia Motors stumbling 2.33 percent while Hyundai Motor shed 1.95 percent.
Large-cap technology shares also posted losses. Samsung Electronics, the largest issue on the KOSPI, fell 1.06 percent while industry peer LG Electronics slid 1.9 percent.
Shipbuilders bucked the trend, with Hyundai Heavy Industries climbing 1.9 percent and Daewoo Shipbuilding & Marine Engineering soaring 3.68 percent.
Daewoo International rose 4.17 percent after the firm reported revenues hit an all-time high and profits jumped more than six-fold last year.
Foreign investors snapped up a net 173.5 billion won ($151.5 million) worth of shares, poised for a seventh straight session of buying, while institutions purchased a net 19.8 billion won worth.
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