Stocks close more than 1 percent lower Monday amid wary investor sentiment

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,408.27 points on Monday, down 29.59 points, or 1.21 percent, from the previous trading day. [YONHAP]

Stocks closed more than 1 percent lower Monday, as investor sentiment remained wary amid the extended Covid-19 restrictions in China that have stoked concerns over global supply disruptions. The local currency fell sharply against the dollar.

The benchmark Kospi retreated 29.59 points, or 1.21 percent, to 2,408.27. Trading volume was moderate at 343.2 million shares worth 6.36 trillion won ($4.74 billion) with decliners far outnumbering gainers 703 to 166.

Foreigners offloaded a net 124.2 billion won worth of shares and institutional investors a net 266.2 billion won, while retail investors bought a net 354.0 billion won.

"The news of Apple's shipment decrease weighed on the local stock market, plus the fall in the Philadelphia Semiconductor Sector," Mirae Asset Securities analyst Seo Sang-young said, referring to the chip index based on 30 U.S. semiconductor companies.

The U.S. tech-rich Nasdaq ended lower Friday, with Apple dipping 2 percent, after media reports it would see a cut in iPhone shipments due to a workers' protest at a main factory in China run by Foxconn.

Beijing has maintained strict Covid-19 restrictions amid a surge in infections, causing global supply chain disruptions.

In Seoul, most tech and IT large-caps finished in the red. Samsung Electronics slid 1.5 percent to 60,100 won and SK hynix dipped 2.4 percent to 83,100 won. Naver also retreated 2.4 percent to 180,500 won.

Builders and logistics companies declined amid a truckers' strike. Hyundai Glovis lost 2.6 percent, and Hyundai Engineering & Construction fell 1.8 percent to 39,400 won.

Cosmetics stocks closed higher. LG Household & Health Care rose 0.7 percent to 617,000 won, and AmorePacific climbed 2.1 percent to 124,500 won.

The local currency ended at 1,340.20 won against the dollar, down 16.5 won from Friday's close.

The Kosdaq dropped 15.66 points, or 2.13 percent, to close at 717.90 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 2.3 basis points to 3.670 percent, and the yield on 10-year government bonds fell 1.3 basis points to 3.610 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]