Stocks close slightly higher Tuesday, but investors remain wary

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,503.46 points on Tuesday, up 10.36 points, or 0.42 percent, from the previous trading day. [NEWS1]

Stocks closed moderately higher Tuesday, extending their winning streak for the fifth day. Investors are keeping a wary eye on upcoming U.S. inflation data that might offer a clue to the Federal Reserve's next move. The local currency inched up against the dollar.

The Kospi rose 10.36 points, or 0.42 percent to 2,503.46, the highest since June 13 when the index ended at 2,504.51. Trading volume was moderate at 446.4 million shares worth 8.74 trillion won ($6.69 billion) with gainers outstripping decliners 422 to 412.

Institutions bought a net 137.2 billion won worth of stocks and foreigners a net 32.4 billion won, while retail investors offloaded a net 176.7 billion won.

"Stocks moved range-bound as investors took a cautious approach ahead of the U.S. consumer price index announcement, despite some positive macro indicators, such as the inflation expectations and the won's recent gain," said Han Ji-young, an analyst at Kiwoom Securities.

U.S. stocks closed almost flat on Monday after the country reported robust jobs data, a possible indication that the Fed could go ahead with a sharp rate hike in the September policy meeting to tame decades-high inflation.

The Federal Reserve Bank of New York lowered inflation expectations to 6.2 percent from 6.8 percent for the next 12 months.

In Seoul, CJ Cheiljedang soared 8.62 percent to 428,500 won and Posco Chemical jumped 5.57 percent to 151,500 won, both on the back of strong quarterly earnings.

Battery makers also finished bullish. LG Energy Solution climbed 2.35 percent to 457,500 won, with Samsung SDI gaining 3.02 percent to 615,000 won.

Tech stocks ended lower with Samsung Electronics falling 1.32 percent to 60,000 won.

The local currency ended at 1,304.60 won against the dollar, down 1.8 won from Monday's close.

The Kosdaq gained 2.79 points, or 0.34 percent, to close at 833.65 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 0.1 basis points to 3.135 percent, and the yield on the 10-year government bond dropped 7.6 basis points to 2.76 percent.

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