Stocks up Wednesday ahead of U.S. Fed's rate-decision meeting

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,415.53 points on Wednesday, up 2.57 points, or 0.11 percent, from the previous trading day. [YONHAP]

Stocks advanced for a third straight session on Wednesday ahead of the U.S. Federal Reserve's rate-decision meeting slated for later this week. The won fell against the dollar.

The benchmark Kospi edged up 2.57 points, or 0.11 percent, to close at 2,415.53 points.

Trading volume was moderate at about 324 million shares worth some 6.9 trillion won ($5.3 billion), with gainers outnumbering losers 492 to 336.

Institutions sold a net 54.8 billion won worth of stocks and foreigners a net 118.3 billion won, while retail investors bought a net 212.0 billion won worth of stocks.

After a lackluster start, trading was weak with widespread expectations that the U.S. Fed may deliver another sharp interest hike this week.

The key stock index rebounded, led by bio advances.

The U.S. Fed is set to announce the results of its two-day monetary meeting results Thursday.

Overnight, the U.S. stock market closed lower. The Dow Jones Industrial Average fell 0.71 percent, and the Nasdaq Composite decreased 1.87 percent.

"In the local financial markets, investors seem to be waiting for the [Fed's policy] guidance about the rate hikes from the FOMC [Federal Open Market Committee] meeting," said DS Investment & Securities analyst Yang Hye-jeong.

In Seoul, Samsung Electronics added 0.16 percent to 61,800 won, while chipmaker SK hynix declined 0.5 percent to 100,000 won.

Samsung Biologics advanced 1.57 percent to 841,000 won, with Celltrion increasing 1.88 percent to 189,500 won.

LG Energy Solution slipped 0.13 percent to 393,500 won, and LG Chem lost 0.35 percent to 565,000 won. Hyundai Motor closed unchanged at 196,000 won, and internet portal operator Naver gained 0.41 percent to 246,000 won.

The local currency closed at 1,313.3 won against the dollar, up 5.7 won from the previous session's close.

The Kosdaq gained 5.77 points, or 0.73 percent, to close at 795.70 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 1.9 basis points to 3.101 percent, and the yield on the 10-year government bond gained 0.1 basis points to 2.80 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]