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By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
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Seoul shares slip; N.Korea, China data weigh
Reuters - 39 minutes ago
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* KOSPI faces resistance near 1,800 points
* N.Korea's artillery firing weighs on sentiment
By Jungyoun Park
SEOUL, Aug 10 - Seoul shares edged lower on Tuesday after recent gains pushed the main index to its highest level this year, as North Korea's artillery firing and China's lower-than-expected import growth weighed on sentiment.
The Korea Composite Stock Price Index <.KS11> ended down 0.5 percent at 1,781.13 points.
China's July imports data showed a surprising decline, its growth slowing to 22.7 percent from 34.1 percent in June. [ID:nTOE67903G]
Further hurting sentiment, North Korea fired a barrage of artillery shells on Monday, some reportedly landing in South Korean waters, adding to already heightened tension on the peninsula. [ID:nTOE678081]
"Such news heightens the country's geopolitical risks, and is not good for overall market sentiment. However foreign investors' continued buying, albeit moderate, indicates the negative impact is still limited," said Kim Jeong-hoon, a market analyst at Korea Investment & Securities.
Foreign investors were buyers of a net 47 billion won ($40.51 million) worth of stocks, but institutions were sellers of a net 115.4 billion won worth of shares.
The benchmark index faces resistance near the psychologically significant 1,800 point level, said Dong-min, a market analyst at KB Investment & Securities. The benchmark index is well above its 30-day moving average of about 1,740 points.
Losses were led by automakers, with Hyundai Motor <005380.KS> losing 4.9 percent and Kia Motors <000270.KS> down 2.6 percent.
"Auto stocks have vastly outperformed the broader market this year. While fundamentals are still sound, some profit-locking activities are seen," said Suh Sung-moon, an analyst at Korea Investment & Securities.
"Increased fund redemption by equity fund holders are also prompting investment managers sell much-gained auto stocks," Suh added.
But Ssangyong Motor <003620.KS> outperformed its larger peers ahead of the deadline for final bids for the troubled automaker, edging up 0.3 percent.
India's Mahindra & Mahindra <MAHM.BO> said last week its board of directors had approved submission of a binding bid for Ssangyong Motor. [ID:nSGE67600G]
Shipbuilders continued rising amid hopes for more orders after news of a 294 billion won drillship order from STX Offshore & Shipbuilding <067250.KS>.
Shares in STX Offshore climbed 1.9 percent and Hyundai Heavy Industries <009540.KS>, the world's biggest shipbuilder, advanced 2.1 percent.
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