Stocks slide with tech, auto, retail struggling

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,780.86 points on Tuesday, down 0.84 percent, or 23.45 points, from the previous trading session. [NEWS1]

Shares fell sharply Tuesday ahead of key economic events in the United States later this week. The local currency traded weaker against the dollar.

The Kospi fell 23.45 points, or 0.84 percent, to 2,780.86, ending a two-session winning streak.

Trade volume was moderate at 532.3 million shares worth 11.5 trillion won ($8.28 billion), with decliners sharply outnumbering gainers 691 to 195.

Foreigners and institutions sold a net 30 billion won and 356.5 billion won worth of local shares, respectively, to lead Kospi's downbeat mode, while individuals bought a net 398.5 billion won.

Expert said investors are waiting for the U.S. Federal Reserve's June minutes slated for release on Wednesday as well as U.S. labor market data scheduled for publication Friday, which will set the tone of the U.S. central bank's rate-setting decision.

Tech, auto, retail and arms companies were among the big losers.

Samsung Electronics stayed flat at 81,800 won ahead of its second-quarter earnings guidance scheduled for release on Friday.

SK hynix retreated 1.49 percent to 232,000 won, and Hanmi Semiconductor Company, a chip equipment supplier, declined 1.29 percent to 168,600 won.

Hyundai Motor sank 4.72 percent to 272,500 won, and Kia slipped 3.89 percent to 123,600 won.

Hanwha Aerospace tumbled 3.49 percent to 235,000 won, and LIG Nex1 plunged 11.45 percent to 195,700 won.

Lotte Shopping and Shinsegae fell 1.72 percent and 1.01 percent to 62,800 won and 156,700 won, respectively.

But financial shares gained ground, with KB Financial Group gaining 4.52 percent to 83,200 won and Shinhan Financial Group leaping 3.45 percent to 49,500 won.

The local currency was trading at 1,388.2 won against the dollar as of 3:30 p.m., up 8.9 won from the previous session's close.

Starting Monday, Korea's foreign exchange market for won-U.S. dollar transactions will operate until 2 a.m.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government fell 4.0 basis points to 3.169 percent, and the return on the benchmark U.S. 10-year government bonds gained 6.5 basis points to 4.463 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]