Seoul Shares Down 2.07% on Earnings Woes

South Korean shares closed 2.07 percent lower Tuesday as investor sentiment was dented by gloomy corporate earnings outlooks and a slowing economy, according to Yonhap News. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 23.83 points to 1,126.82. Volume was moderate at 314.95 million shares worth 3.73 trillion won ($2.72 billion), with losers outpacing winners 608 to 214.

"Investors are jittery as concerns linger over falls in large-cap stocks," Sung Jin-kyung, an analyst at Daeshin Securities, was quoted as saying. "Fourth-quarter earnings of several large-cap companies are widely expected to fall short of market expectations due to a global economic slump."

Market leader Samsung Electronics and LG Electronics are slated to release their fourth-quarter earnings reports later this week.

Major tech exporters lost ground. Industry heavyweight Samsung Electronics fell 2.32 percent to 464,000 won and its local rival LG Electronics lost 3.96 percent to 77,700 won. Panel maker LG Display also dived 3.08 percent to 25,200 won.

Automakers finished weaker with top carmaker Hyundai Motor falling 2.50 percent to 42,950 won and its affiliate Kia Motors dropping 1.26 percent to 7,030 won.

The tech-loaded Kosdaq market closed at 358.19, down 4.94 points from Monday's close.

The local currency ended at 1,374.5 won to the dollar, down 12 won from Monday's close.