South Korea's benchmark KOSPI index fell below 2,000 points on Monday as exporters lagged, squeezed by rising oil prices and expectations of stronger competition from Japan with a weaker yen. Auto and technology issues declined sharply. Hyundai Motor, South Korea's largest automaker, fell 3 percent while Hynix Semiconductor, the world's second-largest chipmaker, dipped 3.12 percent.
The Korea Composite Stock Price Index (KOSPI) closed 1.42 percent lower at 1,991.16 points. Foreign investors turned sellers, offloading a net 39.3 billion won ($34.9 million) worth of shares while institutions dumped shares for a ninth straight session, disposing of a net 200.6 billion won worth.
Crude oil refiners and petrochemical firms were battered as rising oil prices, with Brent crude sitting above a 10-month high at $125 a barrel, threatened to cut deeper into their eroding margins. S-Oil, South Korea's third-largest oil refiner, tumbled 4.92 percent while LG Chem, the country's largest chemical maker, shed 4.07 percent. The KOSPI 200 index fell 1.47 percent while the junior, tech-heavy KOSDAQ index shed 1.07 percent.