Investors lose appetite over U.S.-Russia tensions, stocks fall again

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,676.54 points on Tuesday, down 27.94 points, or 1.03 percent, from the previous trading day. [NEWS1]

Stocks extended their losing streak to a third session Tuesday, as investors' appetite for risky assets weakened amid heightening U.S.-Russia tensions over Moscow's potential invasion of Ukraine. The won sharply fell against the dollar.

The benchmark Kospi lost 27.94 points, or 1.03 percent, to close at 2,676.54 points.

Trading volume was moderate at about 575 million shares worth some 9.2 trillion won ($7.7 billion), with losers outnumbering gainers 698 to 174.

Foreign investors sold a net 267 billion won, while institutions bought 66 billion won and retail investors purchased 184 billion won.

After a flat start, the key stock index increasingly lost ground amid foreign sell-offs.

Investors took to the sidelines, taking a cue from the bearish U.S. stock markets overnight. The tech-heavy Nasdaq composite closed almost unchanged and the Dow Jones Industrial Average lost 0.49 percent.

The government said it will make policy efforts to reign in the market volatility from the Ukraine crisis, citing the growing tensions between the United States and Russia over the region.

"Investors seem to have dumped local stocks due to the continued jitters over Ukraine uncertainties and the rising oil prices," Shinhan Investment researcher Choi Yoo-joon said.

Samsung Electronics closed unchanged from the previous session at 73,700 won, and chipmaker SK hynix dropped 4.15 percent to 127,000 won.

Internet portal operator Naver declined 1.09 percent to 318,500 won, and bio company Samsung Biologics retreated 3.01 percent to 740,000 won.

Among gainers, LG Chem advanced 0.48 percent to 622,000 won. Carmaker Hyundai Motor added 2.27 percent to 180,500 won, with its affiliate Kia climbing 0.78 percent to 77,600 won.

The local currency closed at 1,199.8 won against the dollar, up 8.7 won from the previous session's close.

The Kosdaq lost 12.87 points, or 1.51 percent, to close at 839.92 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 0.1 basis point to 2.344 percent, and the yield on the benchmark 10-year government bond gained 4.5 basis points to 1.98 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]