South Korean shares stepped back from a three-week high reached the previous session as China's factory data missed market expectations, while builders gained ground on stimulus policy hopes. Analysts were mixed about the outlook this week, as expectations for US data and Samsung Electronics' earnings estimates are overshadowed by Japan's monetary policy plans and euro zone jitters.
The Korea Composite Stock Price Index (KOSPI) finished down 0.44 percent at 1,995.99 points on Monday. China's factory production ran at its fastest rate in 11 months in March, data showed on Monday, though the rise to 50.9 missed market expectations of a bigger headline increase.
Investors await US data including the Institute of Supply Management's manufacturing survey, the US non-farm payroll figures, and Samsung Electronics' earnings guidance for the January to March period later this week. "There are few downside risks, and the market will rise moderately this week," said Kim Hak-kyun, an analyst at KDB Daewoo Securities.
"With the new quarter kicking off, there is little reason to sell South Korean stocks. Foreign selling has moderated, the KOSPI will try to stay above the 2,000-level and breach its previous high this week," said Seo Dong-phil, an analyst at IBK Investment & Securities. Doosan Engineering & Construction firmed 2.5 percent while Tongyang gained 4.6 percent. Auto shares lost ground, with Hyundai Motor down 0.9 percent Kia Motors falling 0.9 percent. Kia Motors said its global vehicle sales slipped 2 percent in March from a year earlier, while Hyundai's shipments were flat.