Seoul shares fall on profit taking amid tariff woes

SEOUL, July 2 (Yonhap) -- South Korean stocks finished lower Wednesday as investors moved to take profits from recent gains amid concerns about the United States' tariff scheme. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 14.59 points, or 0.47 percent, to close at 3,075.06, ending a two-day winning streak.

Trade volume was moderate at 691.15 million shares worth 14.59 trillion won (US$10.73 billion), with winners beating losers 451 to 433.

Foreign investors sold a net 335.04 billion won worth of stocks, while individuals and institutions net purchased 250.38 billion won and 79.21 billion won, respectively.

The index opened lower and fell by nearly 2 percent at one point, as investor sentiment was dampened by news that U.S. President Donald Trump threatened to raise tariffs on Japan to as high as 35 percent, upping the ante with just a week remaining before the negotiation deadline on his aggressive tariff scheme.

"Trump's remark that he's not considering an extension of the reciprocal tariff pause suggests that discord may continue through next week's deadline, prompting investors to lock in profits," said Kim Ji-won, a researcher at KB Securities.

Overnight, U.S. shares closed mixed, as an unexpected rise in job openings dimmed the outlook for the Federal Reserve's interest rate cuts.

Also affecting investor sentiment was that Trump threatened to withdraw government subsidies from Tesla and other companies of Elon Musk, as well as examine his immigration status, after Musk ratcheted up his criticism of Trump's tax and spending bill.

Top cap shares finished mixed.

Market bellwether Samsung Electronics rose 1 percent to 60,800 won, while chip giant SK hynix sank 2.28 percent to 279,000 won.

Major battery maker LG Energy Solution surged 1.68 percent to 302,500 won, and No. 1 steelmaker POSCO Holdings spiked 4.35 percent to 288,000 won.

Leading biotech firm Samsung Biologics advanced 0.6 percent to 1,009,000 won, and top financial firm KB Financial surged 2.44 percent to 113,500 won.

But nuclear power plant manufacturer Doosan Enerbility shed 1.44 percent to 61,600 won, and defense giant Hanwha Aerospace decreased 2.38 percent to 819,000 won.

Carmakers gathered ground. Top carmaker Hyundai Motor surged 1.67 percent to 213,500 won, and its sister Kia Motors gained 1.32 percent to 100,000 won.

But top online portal operator Naver retreated 3.82 percent to 252,000 won, and Kakao, the operator of the country's dominant mobile messenger, dipped 2.33 percent to 58,700 won.

The local currency was quoted at 1,350 won against the greenback at 3:30 p.m., down 2.8 won from the previous session.

graceoh@yna.co.kr
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