Seoul shares remain down for third day

Seoul shares fell for a third consecutive session on Tuesday with exporters such as Hyundai Motor hit by worries that China will tighten monetary policy and by growing concern about the US subprime mortgage sector.
The twin effects are particularly hurtful to South Korean firms given that China and the United States are the country's first and second-largest export markets.
Analysts said the main KOSPI could remain on the defensive this week, with trading volumes falling noticeably, while selling by foreign investors remains relentless.
Decliners outnumbered gainers by 590 to 193 on Tuesday. "We have concerns on two fronts, with China markets dropping and US markets hit by subprime mortgage worries," said Kim Jeong-hwan, a strategist at Woori Investment and Securities.
"Foreign investors also continue to sell, which is pressuring markets. In my opinion we are not seeing a 'sell Korea' pattern but some profit taking after the market's recent surge," he added.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.47 percent to end at 1,749.55 points. The 2.5 percent drop over the past three trading sessions marks a retreat for a main index that had until last week staged a record setting rally, with the latest all-time high of 1,813.84 hit on June 19.
Worries about global interest rates, combined with recent warnings by government officials about a surge in trading done on credit, has helped temper the mood, analysts have said.
On top of that, foreign investors are cashing out. Their net sales of 3.17 trillion won ($3.42 billion) worth of KOSPI shares in June virtually wiped out their net purchases for the year, during a month in which recently under-performing markets such as Taiwan are reporting a surge in foreign inflow. Exporters fell, with Hyundai Motor Co dropping 4.81 percent to 73,300 won, its biggest one-day fall since June 20, 2006.
Chinese shares slumped for a third session on Tuesday amid concerns the government will adopt policies to cool the economy and market, while investors fear fallout from the struggling US subprime mortgage market will hit US consumer spending.
Carrier Korean Air Co fell 0.56 percent to 53,500 won. SK shares have surged 71.2 percent this year, touching a record on June 18, as investors anticipate that the restructuring will raise the values of its affiliates and increase transparency.