S. Korean stocks tumble on worry about fast U.S. rate hike

SEOUL, Feb. 7 (Xinhua) -- South Korean stocks tumbled Wednesday on continued worry about faster-than-expected interest rate hikes in the United States.

The benchmark Korea Composite Stock Price Index (KOSPI) dipped 56.75 points, or 2.31 percent, to settle at 2,396.56 Trading volume stood at 452.55 million shares worth 8.25 trillion won (7.59 billion U.S. dollars).

The KOSPI declined more than 1 percent for four trading sessions in a row amid rising concerns that the U.S. Federal Reserve may raise its benchmark interest rate at a faster pace than forecast.

It marked the first time in four months that the main index fell below the 2,400 level.

Both foreign and institutional investors dumped shares, but individual investors bought shares, limiting the KOSPI's further decline. Foreigners were net sellers for the seventh consecutive session.

Large-cap shares lost ground after gaining early in the trading. Market bellwether Samsung Electronics dropped 3.4 percent, and top steelmaker POSCO dipped 2.7 percent.

Samsung C&T, the de-facto holding company of Samsung Group, the country's biggest family-controlled conglomerate, plunged 4 percent, and leading chemical firm LG Chem retreated 3.5 percent.

South Korea's currency finished at 1,086.6 won against the greenback, up 4.9 won from the previous close.

Bond prices ended higher. Yields on the liquid three-year treasury notes fell 0.5 basis points to 2.248 percent, and the return on the 10-year government bonds dipped 3.1 basis points to 2.718 percent. Enditem