Stocks fall 0.67 percent ahead of Fed meeting note release

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,516.47 points on Wednesday, down 17.05 points, or 0.67 percent, from the previous trading day. [NEWS1]

Shares snapped their three-day winning streak Wednesday as investors await the latest minutes of the Federal Reserve that will give them an idea of its future rate policy to combat high inflation. The won fell against the dollar.

The Kospi fell 17.05 points, or 0.67 percent, to close at 2,516.47 points.

Trading volume was moderate at about 410 million shares worth some 7.04 trillion won ($5.4 billion), with losers outnumbering gainers 633 to 229.

Institutions sold a net 201 billion won worth of stocks, offsetting foreigner and individual combined purchases of 210 billion won.

The Kospi opened higher amid market speculation that inflation pressure is peaking, making a global recession less likely.

But the main index fell back into negative territory as investors cashed in recent gains ahead of the U.S. central bank's minutes due Wednesday.

Large-cap stocks were mixed across the board.

Samsung Electronics fell 1 percent to 60,400 won, but chipmaker SK hynix rose 0.4 percent to 97,100 won. Hyundai Motor declined 3.8 percent to 190,000 won, but Korean Air gained 1.5 percent to 27,000 won.

State-run utility Korea Electric Power Corp remained unchanged at 21,700 won, but state-run Korea Gas Corp. jumped 3.6 percent to 41,250 won. SK Innovation gained 3.2 percent to 210,000 won.

Internet-based company stocks fell on Wednesday, with Kakao falling 0.74 percent to 80,100 won and Naver falling 0.58 percent to 258,000 won.

Mecaro, a manufacturer specializing in semiconductor parts, fell 6.23 percent to 12,600 won, while Vidente, a broadcasting equipment company that is the largest shareholder of Bithumb Holdings, which runs the Bithumb crypto exchange, fell 15.43 percent to 8,880 won.

The won closed at 1,310.30 won against the dollar, up 2.20 won from the previous session's close.

The Kosdaq fell 7.32 points, or 0.88 percent, to close at 827.42 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds climbed 0.5 basis points to 3.088 percent, and the yield on the 10-year government bond rose 2.5 basis points to 2.81 percent.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]