* Trading subdued on worries about Q3 earnings
* Builders hit by pessimism on global slowdown
* POSCO sags on discount block sale by SK Telecom
* KOGAS rallies on Iraq pipeline contract
SEOUL, Oct 8 (Reuters) - South Korean shares fell on Mondayon concerns about cooling Asian growth and deteriorating companyearnings.
The Korea Composite Stock Price Index (KOSPI) closed
0.7 percent lower at 1,981.89 points, closing below the 2,000point mark for the eighth straight session.
"External events, including the uncertainty about Spain, areweighing on the index. However, the real move will come from the(upcoming) Q3 earnings reports," said Song Sang-hoon, an analystat Kyobo Securities.
Other Asian stocks, along with European futures, alsoweakened. The MSCI index of Asia-Pacific shares excluding Japan
fell 1 percent.
Earlier on Monday, the World Bank cut its growth outlook forEast Asia, citing particular concern about a prolonged slowdownin China.
Shipbuilders fared worse than most, with Hyundai HeavyIndustries and Samsung Heavy Industries ,slumping 2.8 percent and 2.5 percent.
Shares in POSCO also slid down 1.9 percentfollowing news that SK Telecom Co Ltd had sold a1.43 percent stake in the steelmaker at a discount of 3.26percent to POSCO's Friday closing price before the stock marketopened on Monday.
Korea Gas Corporation (KOGAS) was among the fewwinners, closing up 4.3 percent after its secured a $127 millioncontract to build a pipeline in Iraq.
Decliners outnumbered gainers 534 to 302.
The KOSPI 200 benchmark of core stocks closed down0.7 percent, while the KOSPI 200 futures for Decemberalso dipped down 0.7 percent for the fourth session.
Move on day -0.67 percent 12-month high 2,057.28 14 March 2012 12-month low 1,769.31 25 July 2012 Change on yr +8.55 percent All-time high 2,231.47 27 April 2011 All-time low 93.10 6 January 1981
(Reporting By Somang Yang; Editing by Kim Coghill)
Keywords: MARKETS KOREA STOCKS/