South Korean stocks retreated for a third day, underperforming other Asian markets, as profit-taking moves took a toll on refinery and chemical stocks. The Korea Composite Stock Price Index finished down 2.31 percent at 2,018.47 points, the lowest level since March 23.
KOSPI 200 September futures fell 5.7 points to 261.55 and the KOSPI 200 spot index slid 6.26 points to 261.54. The junior Kosdaq market finished down 1.85 percent at 522.07. In addition to jitters that the US economy may slip further, analysts said investors were watching developments concerning eurozone debt problems. Italy's five-year bond yields reached the same level as Spain's in a sign that Rome was overtaking Madrid as a key focus of investor concerns about debt sustainability.
KOSPI lagged behind the MSCI Asia ex-Japan index, which retreated 1.3 percent as of 0633 GMT, blowing through its key 200-day moving average. Choi added that carmakers, chemical and refinery stocks considered to be the leading stocks behind the market's recent rise took a hit from news on Japan's monetary easing.
Energy stocks were the biggest loser, dropping 7 percent. Key exporters lost ground with the country's No 1 carmaker Hyundai Motor falling for three straight sessions. Hyundai fell 2.3 percent and its affiliate Kia Motors lost 3 percent. Shinhan Financial Group, the country's biggest financial services firm by market value, rose 1.7 percent after it posted more than double net profit versus a year ago.