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Seoul shares hit 7-mth low on Spain woes, downbeat U.S. earnings
July 25, 2012 / 3:01 AM / 5 years ago

Seoul shares hit 7-mth low on Spain woes, downbeat U.S. earnings

* KOSPI falls to lowest intraday level since December

* Techs tumble after Apple misses earnings forecast

By Joonhee Yu

SEOUL, July 25 (Reuters) - Seoul shares fell to a seven-month low on Wednesday as investors cut risk on increasing worries that Spain may be forced to seek a bailout and disappointing U.S. corporate earnings weighed.

The Korea Composite Stock Price Index (KOSPI) fell 1.4 percent to 1,768.93 points by 0116 GMT, trimming losses from a session low of 1,758.99, the weakest level since December.

Spain’s soaring borrowing costs underscored its refinancing difficulties amid rescue calls from its indebted regions and troubled banks, stoking fears that the euro zone’s fourth-largest economy could seek the assistance of international lenders.

“With the euro zone in trouble again and U.S. manufacturing stuck in low gear, it somewhat feels like a parallel to what we saw in the market last August,” said Cho Byung-hyun, an analyst at Tong Yang Securities.

Risk-off sentiment triggered sharp declines across the board, with 18 out of the 19 industry group sub-indices tracked by main bourse operator Korea Exchange languishing in the red.

Large-cap technology shares underperformed, highlighted by prominent Apple Inc suppliers after the tech giant’s April-June results fell short of analyst forecasts, pressured by a sagging global economy embroiled by the euro zone debt crisis.

LG Display, a key supplier of LCD screens for Apple’s iPhone and iPad line of products, tumbled 4.3 percent while Samsung Electronics fell 2 percent.

“Apple’s very low guidance for the September quarter put many investors on alert,” said Kang Jung-won, an analyst at Daishin Securities.

LG Display, Samsung Electronics, and LG Electronics are all set to publish their second-quarter results in a busy week for domestic tech giants. (Reporting by Joonhee Yu; Editing by Jacqueline Wong)

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