Stocks decline 1.1% following falls in U.S. on rate concerns

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Stocks decline 1.1% following falls in U.S. on rate concerns

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,639.06 points on Wednesday, down 29.25 points, or 1.10 percent, from the previous trading day. [YONHAP]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,639.06 points on Wednesday, down 29.25 points, or 1.10 percent, from the previous trading day. [YONHAP]

 
Stocks closed lower Wednesday, as investor sentiment was dampened by deepening concerns over a global economic slowdown amid high inflation and the continued lockdown in China. The currency fell sharply against the dollar.
 
The Kospi lost 1.10 percent, or 29.25 points, to close at 2,639.06.
 
Trading volume was moderate at 1.06 billion shares worth 12.40 trillion won ($9.81 billion) with decliners outstripping gainers 695 to 193.
 
Foreigners and institutions offloaded a net 678.9 billion won and 239.9 billion won worth of stocks, respectively, while retail investors bought a net 907.1 billion won.
 
"High inflation is expected to trigger faster-than-expected rate hikes, which stoke fears of an economic slowdown. China's virus curbs, coupled with the ongoing crisis surrounding Ukraine, also sparked concerns over the global supply chain disruptions," Meritz Securities analyst Lee Kyeong-soo said.
 
Last week, Federal Reserve chairman Jerome Powell said he sees the need to move "a little more quickly" in terms of raising interest rates to bring down inflation, and a 50 basis points hike is possible next month.
 
Samsung Electronics fell 1.66 percent to nearly a 52-week low of 65,000 won, and chipmaker SK hynix lost 2.25 percent to 108,500 won.
 
Battery maker LG Energy Solution declined 1.3 percent to 418,000 won.
 
KB Financial tumbled 3.5 percent to 57,900 won, and Kakao Bank retreated 2.31 percent to 42,250 won.
 
Samsung Biologics rose 0.75 percent to 810,000 won, and Celltrion advanced 1.79 percent to 171,000 won. Vaccine maker SK bioscience jumped 2.18 percent to 140,500 won.
 
The local currency ended at 1,265.20 won against the dollar, up 14.40 won from Tuesday's close.
 
It is the first time in more than two years that the local currency fell to the 1,260 won level.
 
The Kosdaq declined 14.98 points, or 1.64 percent, to close at 896.18 points.
 
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.9 basis points to 2.868 percent, and the yield on the benchmark 10-year government bond dropped 9.8 basis points to 2.72 percent.

BY CHO JUNG-WOO, YONHAP [[email protected]]
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