South Korean stocks are expected to remain weak next week as the United States and China struggle to reach a deal on their yearlong trade dispute and escalating unrest in Hong Kong poses yet another risk to the local stock market, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,101.96 points on Friday, down 2.7 percent from last week.

Earlier this week, South Korean stocks closed lower as investors remained cautious over mixed signals regarding a potential US-China trade deal.

The US Senate also passed a bill that centers on protecting human rights in Hong Kong in response to the Chinese government's crackdown on pro-democracy rallies in the autonomous territory, leading to further uncertainties.

On Friday, however, the market rebounded after four consecutive sessions of declines on hope that the world's top two economies may delay their plans to roll out new tariffs, originally slated for December 15, in the latest efforts to resolve the prolonged dispute.

Foreigners sold a net 1.5 trillion won ($1.27 billion) worth of local stocks this week. Retail investors bought a net 128.6 billion won, and institutions scooped up a net 1.1 trillion won.

Next week, analysts said investors will keep a watchful eye on progress in the trade talks between the US and China, while paying attention to the developments in Hong Kong.

"The situation in Hong Kong is leading to escalating tension between the US and China. The issue is expected to have an adverse impact on the trade negotiations between the two," Kim Byung-yeon, an analyst at NH Investment & Securities Co., said.

(Yonhap)