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South Korea stocks face worst day in three weeks, won extends gains

Published on Apr 11, 2014 11:04 AM

SEOUL (Reuters) - Seoul shares slid on Friday morning and headed for their worst day in three weeks after a sharp decline in Wall Street turned investors away from risk, but solid March Chinese inflation data helped pare some of the initial losses.

The Korea Composite Stock Price Index (KOSPI) was down 0.7 per cent at 1,993.71 points as of 10.10am Singapore time after touching an intraday low of 1,985.16. The index is headed for its biggest one day drop since a 0.9 per cent slide on March 20.

"The risk-off sentiment stemming from New York has spilled over to Seoul, prompting profit-taking as investors caught their breath," said Hyundai Securities analyst Bae Sung-young, "the upcoming first quarter corporate earnings results will decide the extent of the market's rebound in the near term."

Shares in Wall Street plunged on Thursday, with the Nasdaq Composite suffering its biggest drop in 2-1/2 years after another sharp selloff in biotech and momentum names.

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