Kim Jong-il death moves markets lower

Geopolitical uncertainty over the death of North Korean dictator Kim Jong-il spooked South Korea's stock market on Monday, sending the main index down nearly 3.5 per cent.

The Korea Exchange's benchmark KOSPI index closed down 3.43 per cent to 1,776 points on the day. Earlier, it had been as much as 4.86 per cent lower following news of the leader's death.

Individual stocks, including some of Korea's biggest corporate names, were hit harder. Hyundai P&C, a division of Korean conglomerate Hyundai that makes paints and surface coatings, was down nearly 10 per cent. Samsung Heavy Industries was off 5.4 per cent, while Korean Air Lines tumbled 7.5 per cent.

The KOSPI's largest ever single-day loss was on Sept. 12, 2001, when it fell more than 12 per cent following the attacks the day before on the World Trade Center in New York and the Pentagon.