Seoul shares down nearly 3pc after weak US data
By 0135 GMT, the Korea Composite Stock Price Index (KOSPI) fell 2.6 percent to 1,818.38 points after finishing the previous week with a 5 percent gain.
"Weak US jobs data is only adding to investors' growing frustration with the economy. With waning confidence on the global economy, investors are reducing their exposure to stocks," said Yoo Soo-min, a market analyst at Hyundai Securities.
Selling pressure also mounted amid growing volatility ahead of major events this week including a policy rate meeting in Korea and US President's speech on Thursday.
The KOSPI Volatility index soared 11.8 percent.
The US stocks closed down more than 2 percent on Friday after an abysmal jobs report showed no growth in nonfarm jobs in August.
The disappointing data will add pressure on the Federal Reserve to provide more monetary stimulus to the economy and investors are now expected to focus on President Barack Obama's speech on Thursday on jobs.
Shares in LG Chem fell 4.5 percent and Kumho Petrochem shed 3.9 percent. S-Oil dropped 5.9 percent and Hanwha Chemical faltered 6.3 percent.
"Refiners and chemicals are cyclical stocks, meaning they are one of the most vulnerable issues to the economic cycle," said Kwak Jin-hee, an analyst at Eugene Investment & Securities.
"Sell orders are pummelling them again as worries of weaker product demand deepens."
Shipbuilders also led the market lower, falling 4.4 percent, hit by concerns of a fragile global economy weakening global trade and ship orders.
Shares in the world's top shipbuilder Hyundai Heavy Industries fell 5.1 percent, Daewoo Shipbuilding fell 4.3 percent and Samsung Heavy Industries lost 5.0 percent.
Bucking the trend, shares in security solutions provider Ahnlab jumped by the daily limit of 15 percent for a second day after its founder and chairman of the board said he was considering running in the upcoming Seoul mayoral race.
The stock was bolstered by expectations that the college professor may boost the software sector should he win the election.
Foreign investors were net sellers for a second straight session, offloading a net 86 billion won worth of stocks.
Copyright Reuters, 2011