Seoul shares retreat ahead of U.S. jobs data, Italian vote

Korean stocks closed lower Friday as investors took to the sidelines on rising uncertainties ahead of U.S. payroll data and a weekend Italian referendum. The Korean won fell against the dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 13.15 points, or 0.66 percent, to close at 1,970.6. Trade volume was slim at 238.38 million shares worth 3.53 trillion won ($3.02 billion), with losers overwhelming gainers 521 to 284.

The U.S. is set to releases its November jobs report later in the day, which could underscore the strength of the world’s largest economy and raise the odds of an interest rate hike in mid-December.

Italy’s Sunday referendum on reducing the power of the Senate is sapping risk-on sentiment as a vote against the government could signal populism’s rise in Europe following Donald Trump’s win in the U.S. election.

"Investors remain cautious on uncertainties surround- ing the Italian referendum and its implications in the global equity market," said Kim Sung-hwan, an analyst at Bookook Securities. "A defeat for Matteo Renzi, the Italian prime minister, could negatively affect the eurozone, which could further strengthen the U.S. dollar against its major peers."

Foreigners and institutions each dumped a net 35.73 billion won and 30.09 billion won worth of stocks, while retail investors scooped up a net 39.40 billion won.

Top market cap Samsung Electronics, which hit a record high in the previous session, declined 1.26 percent to 1.73 million won, while global chipmaker SK hynix edged up 0.45 percent to 44,400 won.

Korea Electric Power Corp, the state-run power provider, dropped 2.36 percent to 43,450 won.

Lotte Group shares slumped following reports that Chinese authorities are conducting an intensive investigation into its sub- sidiaries by way of tax audits or safety inspections at plants in China.

The move came after the retail giant struck a deal with Seoul’s defense ministry to provide a site to house an advanced U.S. anti-missile system in South Korea.

Lotte Shopping, its major retail unit that operates several outlets in China, decreased 1.41 percent to 210,500 won, and Lotte Chilsung Beverage retreated 2.19 percent to 1,520,000 won.