South Korean stocks dropped 0.85 percent on Thursday on concerns that the U.S. economic recovery is still weak, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI lost 17.33 points to close at 2,014.41, extending its losing streak to a second day. Trading volume was moderate at 446 million shares worth 4.91 trillion won ($4.32 billion) with losers outpacing gainers 603 to 222.

“Today’s decline is due mainly to worries over the U.S. economy and the eurozone economy,” said Park Jin-cheol, an analyst at Eugine Investment & Securities. “The market is likely to face a short-term correction period.”

Investors were spooked by fresh worries over the U.S. economy. Worse-than-expected U.S. durable goods orders sent the Dow Jones industrial average 0.54 percent lower. The weak economic data followed Tuesday’s release of poor consumer sentiment and falling house prices.

Shipbuilders, tech firms and brokerage firms led the market decline.

Hyundai Heavy Industries, the country’s leading shipbuilder, declined 3 percent to close at 323,000 won, and its smaller rival Daewoo Shipbuilding & Marine Engineering dropped 5.3 percent to end at 31,250 won.

Market bellwether Samsung Electronics shed 1.69 percent to close at 1,280,000 won. LG Electronics, the country’s leading home appliance maker, fell 0.24 percent to close at 82,100 won.

LG Display also plummeted 2.95 percent to end at 26,350 won. It had tumbled nearly 5 percent on Wednesday on news that Hon Hai Precision Industry of Taiwan forged an alliance with Sharp Corp. of Japan for an LCD business.

Other large-cap shares closed higher. Industry leader Hyundai Motor gained 1.72 percent to end at 236,500 won, and its smaller affiliate Kia Motors rose 0.27 percent to close at 75,000 won.

The local currency finished at 1,136.90 won to the greenback, down 1.4 won from Wednesday’s close, as worse-than-expected U.S. economic data sapped demand for riskier assets, dealers said. 

(Yonhap News)