South Korean stocks fell for the third consecutive session Tuesday, as US President Donald Trump's sweeping tariff scheme stoked fears of a global trade war. The local currency rose against the US dollar.
The benchmark Korea Composite Stock Price Index shed 3.86 points, or 0.15 percent, to close at 2,528.92.
Trade volume was moderate at 475.57 million shares worth 12.84 trillion won ($8.78 billion), with losers outnumbering winners 590 to 310.
The index opened slightly higher, despite US losses, but moved within a tight range and drifted lower.
Institutional and offshore investors sold a net 147.22 billion won and 196.61 billion won worth of local shares, respectively, while retail investors bought a net 206.31 billion won.
Trump's long-threatened sweeping tariffs on goods from Mexico, Canada and China came into effect as planned on Tuesday.
In response, China vowed to slap 10-15 percent tariffs on some American imports and implemented export restrictions. Canada has also vowed retaliatory measures.
"The tariff issue is expected to cause greater volatility, though any drastic market plunge seems unlikely," Han Ji-young, a researcher from Kiwoom Securities, said.
Investors also remained wary of weak economic growth momentum, as government data showed that South Korea's industrial production, retail sales and facility investment all went down from a month earlier in January.
Top-cap shares traded mixed.
Market bellwether Samsung Electronics remained unchanged at 54,500 won, while chip giant SK hynix sank 2.16 percent to 186,100 won.
Leading bio firm Samsung Biologics rose 0.36 percent to 1,120,000 won, but Celltrion lost 0.27 percent to end at 183,500 won.
Leading electric vehicle battery maker LG Energy Solution dived 5.68 percent to 332,000 won, and leading portal operator Naver slid 0.72 percent to 205,500 won.
Carmakers ended mixed. No. 1 carmaker Hyundai Motor tumbled 1.4 percent to 190,300 won, while its sister affiliate Kia edged up 0.11 percent to 93,300 won.
Defense shares gathered ground on hopes for Europe's greater defense spending after Trump suspended military assistance to Ukraine to pressure Ukrainian President Volodymyr Zelenskyy to engage in negotiations to end the war with Russia.
Major defense firm Hanwha Aerospace shot up 18.01 percent to 701,000 won, and Hyundai Rotem surged 10.87 percent to 86,700 won.
Shipbuilders also rose on expectations for Seoul and Washington's cooperation in the industry. HD Hyundai Heavy climbed 6.25 percent to 314,500 won, and Hanwha Ocean soared 14.54 percent to 85,100 won.
The local currency was quoted at 1,461.8 won against the greenback at 3:30 p.m., up 1.6 won from the previous session. (Yonhap)
