Round-up of South Korean financial markets:

 

** South Korean shares fell on Wednesday, as weak economic indicators from China dampened risk appetite, but managed to post their third consecutive monthly gain.

** The Korean won weakened, while the benchmark bond yield dropped.

** The benchmark KOSPI closed down 8.40 points, or 0.32%, at 2,577.12.

** The KOSPI rose 3.02% for the month, posting its best monthly performance since January.

** China's factory activity shrank faster than expected in May on weakening demand, hurting investor sentiment across the broader Asian market.

** On the domestic front, South Korea's factory production and retail sales dropped in April, indicating another tough quarter after the economy narrowly averted a recession in the first quarter.

** Investors shrugged off a North Korean satellite launch on Wednesday that ended in failure, saying it posed little geopolitical risks.

** "The index turned lower after China's PMI data, while there was also profit taking in the semiconductor sector from recent steep gains," said analyst Choi Yoo-june at Shinhan Securities.

** Technology giant Samsung Electronics fell 1.24% and peer SK Hynix lost 1.54%, but battery maker LG Energy Solution advanced 3.28%.

** Of the total 935 issues traded, 305 shares gained.

** Foreigners were net buyers of shares worth 221.2 billion won ($167.46 million), bringing their monthly purchase to 4.28 trillion won, the biggest in four months.

** The won ended onshore trade at 1,327.2 per dollar, 0.17% lower than its previous close.

** In money and debt markets, June futures on three-year treasury bonds rose 0.25 point to 104.30.

** The most liquid three-year Korean treasury bond yield fell by 8.9 basis points to 3.473%, while the benchmark 10-year yield fell by 10.9 basis points to 3.543%. ($1 = 1,320.9300 won) (Reporting by Jihoon Lee; editing by Eileen Soreng)