Seoul shares drop 1.05 pct on U.S. debt jitters

SEOUL, July 29 (Yonhap) -- South Korean stocks finished 1.05 percent lower Friday as the U.S. political deadlock over a debt limit deal unleashed foreign sell-offs, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 22.64 points to 2,133.21. Trading volume was moderate at 325 million shares worth 5.95 trillion won (US$5.65 billion) with losers leading gainers 487 to 337.
"Underwhelmed by U.S. lawmakers' delay in a vote on a debt ceiling bill, investors shunned stocks," said Cho Byung-hyun, an analyst at Tong Yang Securities Inc.
U.S. Republican lawmakers called off the vote on House Speaker John Boehner's bill to increase the U.S. debt ceiling, muddling the prospects of reaching an agreement before the Aug. 2 deadline. The move fueled concerns about the world's largest economy falling into a default.
Foreign investors, who remained net sellers of local stocks for the fifth straight day, cut a net 139.8 billion won.
Stocks were bearish across the board, with oil refiners slumping significantly after reporting smaller-than-expected earnings for the second quarter.
Top oil refiner SK Innovation fell 2.02 percent to 218,000 won after reporting a 29 percent drop in its April-June net income. S-Oil plunged 6.29 percent to 149,000 won on disappointing earnings.
Auto exporters also lost ground. Leading car maker Hyundai Motor dropped 1.67 percent to 235,000 won, and its smaller affiliate Kia Motors inched down 0.13 percent to 77,400 won.
Samsung Electronics, however, rose 0.84 percent to 844,000 won as its second-quarter earnings beat the market forecast thanks to its mobile business, which outperformed the industry.
The local currency closed at 1,054.5 won to the greenback, down 2.8 won from Thursday's close, as investors shunned risky assets amid growing uncertainties about U.S. budget limit talks, dealers said.