SEOUL: Seoul shares were steady near midday on Thursday, as earlier losses on resurfacing worries over the euro zone debt crisis and weaker than expected manufacturing data were erased by year-end window-dressing bids.
The Korea Composite Stock Price Index (KOSPI) inched 0.14 percent lower at 1,822.53 points as of 0300 GMT.
"Although euro-zone debt concerns are providing a drag, losses are likely to be limited, with trading seen rangebound between 1,800-1,835 as investors engage in the traditional practice of window-dressing with only two trading days remaining this year," said Bae Sung-young, a market analyst at Hyundai Securities.
He noted the market had posted gains on nine of the 11 last trading days of the year since 2000.
Falls were led by bank shares on renewed concerns that the euro zone's persistent debt problems could hurt lenders, with Shinhan Financial Group down 1.37 percent and Hana Financial Group shedding 0.99 percent.
The euro hit near one-year low against the dollar and a 10-year low against the yen as data showed banks were hoarding cash recently lent out by the European Central Bank, dashing initial hopes that the measures would aid the region's liquidity crunch.
Steelmakers, seen as volatile to changes in economic cycles, were also hit, with POSCO dipping 1.3 percent and Hyundai Steel Co falling 1.15 percent.
South Korea's November factory output fell short of expectations according to data released before markets opened, highlighting the vulnerability of Asia's fourth-largest economy to cooling demand and export reliance.
Shares in security software firm Ahnlab Inc bucked the wider trend, soaring 12.99 percent on reports that founder and chairman Ahn Cheol-Soo was preparing to run in presidential elections next year.
On Thursday, Hyundai Motor Group announced that it would boost R&D expenditures by 10.9 percent next year to 5.1 trillion won ($4.41 billion).
Shares in Hyundai Motor Group units reversed earlier losses following the news, with Hyundai Motor Co trading flat and Kia Motors Corp up 1.21 percent.
Offshore investors were net sellers, offloading 61.8 billion won ($53.48 million) worth of shares and poised to snap a four-day buying streak, while institutions snapped up a net 55.1 billion won worth.
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