South Korean shares fell to a two-week closing low on Friday as investors grew doubtful about stimulus measures from the US Federal Reserve anytime soon and concerns about global growth returned to the fore. Stock and currency markets were cheered earlier in the week by the release of minutes from the latest Fed meeting which hinted at near-term easing.
But the rally was cut short after a senior Fed official said US economic data has shown recent signs of improvement, leaning against expectations of policy action. The Korea Composite Stock Price Index (KOSPI) fell 1.17 percent to close at 1,919.81 points, down 1.4 percent for the week and its lowest level since August 8.
Financials were the top underperformers, with Hana Financial Group tumbling 4.4 percent and Woori Finance Holdings down 3.9 percent. Shipyards, highly dependant on demand from Europe, registered sharp losses as Daewoo Shipbuilding & Marine Engineering slid 3.4 percent while Hyundai Heavy Industries shed 2.4 percent.
Broad falls across the main board saw 18 out of 19 industry group sub-indices tracked by bourse operator Korea Exchange ending up in the red. Foreign investors snapped a 13-day buying streak on Friday, dumping a net 240 billion won ($212.3 million) worth of shares. The KOSPI 200 index of large caps fell 1.4 percent.