Seoul shares down

Seoul shares fell 0.5 percent on Wednesday, as exporters such as Hyundai Motor were hit by worries that inflationary pressures would raise interest rates world-wide, slowing down economic growth.
Lenders such as Woori Financial Group dropped on caution that rates in South Korea would also be raised sooner than expected, although there is still considerable debate about the pace of economic growth.
The International Monetary Fund said on Wednesday the country's monetary policy looks appropriate, while data showing the unemployment rate in May rose to a six-month high appeared to support the case against a rate rise. Bond yields pared earlier sharp gains by midafternoon after the jobs data and the IMF comments reduced expectations for higher interest rates, dealers said.
Stock analysts do not expect an extended decline in a KOSPI that has gained for a record-setting 14 weeks as of last Friday, with brokerages rallying amid soaring trading values and expectations for consolidation in the sector. "You can't ignore the case that inflation globally is rising," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.
"Although domestic interest rates have not been changed in a while, closer attention is being paid to the recent pace of economic recovery, raising debate about inflation and how soon rates will be raised," he added. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.46 percent to 1,721.99 points.
The index has lost 0.3 percent so far this week on the back of worries about global interest rates and caution ahead of the simultaneous expiry on Thursday of stock options, stock index options and stock index futures, an event known as triple witching day.
Foreign investors sold a net 307.8 billion won ($330.6 million), according to Korea Exchange data at 0630 GMT, marking their sixth consecutive day of net sales and bringing their total during the period to 1.57 trillion won.
Hyundai Motor Co fell 0.96 percent to 72,100 won. Samsung Electronics Co Ltd, the world's biggest maker of memory chips, lost 0.87 percent to 573,000 won. Daewoo Securities Co rose 2.54 percent to 30,250 won.