South Korean shares edged lower on Friday, with upbeat data from China helping to narrow early losses, but still finished the week higher to notch up a fourth consecutive weekly gain. The Korea Composite Stock Price Index (KOSPI) closed down 0.4 percent at 1,995.04 points, after hitting a near three-month closing high on Thursday. The index was up 1.9 percent for the week.
"China's data helped narrow the loss a bit, but the index is resting to consolidate Thursday's rapid gains," said Cho Byung-hyun, an analyst at Tongyang Securities. He expected the index to rise well above the 2,000-mark in coming weeks as global liquidity bolsters risk appetite.
The China HSBC flash purchasing managers' index picked up in December, underlining a brighter outlook for South Korea's biggest trading partner. Decliners outnumbered winners 410 to 381. LG Display was a big loser, falling 3.9 percent. Shares in the flat-screen maker rose 32 percent in value between September and December, making it ripe for profit-taking.
"There is no change in fundamentals and the company's profits are set to improve. However, shares have risen a lot recently, with some investors thinking that it will benefit from Sharp's misfortunes," said Choi Do-yeon at LIG Investments & Securities, referring to Japan's troubled Sharp Corp. SK Holdings slumped down 4.3 percent following news that unlisted affiliate SK Engineering & Construction is being sued by a Mexican oil company. The KOSPI 200 benchmark of core stocks closed down 0.5 percent, while the junior KOSDAQ edged 0.3 percent higher.
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