Stocks decline as inventors see no quick end to rate increases

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Stocks decline as inventors see no quick end to rate increases

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,474.65 points on Monday, down 8.51 points, or 0.34 percent, from the previous trading day. [YONHAP]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,474.65 points on Monday, down 8.51 points, or 0.34 percent, from the previous trading day. [YONHAP]

 
Stocks ended lower Monday as investors moved to cash in recent gains on concern that the U.S. Federal Reserve is not done with aggressive rate hikes.
 
After choppy trading, the benchmark Kospi lost 8.51 points, or 0.34 percent, to close at 2,474.65.
 
Trading volume was moderate at about 499 million shares worth some 7.21 trillion won ($5.43 billion), with gainers outnumbering losers 563 to 301.
 
Foreigners bought a net 144.1 billion won worth of shares and retail investors a net 18.6 billion won while institutions shed a net 170.9 billion won. 
 
The market opened higher after the previous session's sharp advance, but earlier gains were erased after Fed official Christopher Waller said Sunday the Fed is still "a ways to go" before stopping raising rate hikes. 
 
"Upward momentum in the market has been weakening, and the Kospi's rebound is forecast to end before long," Daeshin Securities analyst Lee Kyung-min said.
 
"Foreign investors, in particular, could move to take profits anytime, given that concerns over the economic downturn and corporate results have been growing," he added.
 
In Seoul, Samsung Electronics fell 1.59 percent to 61,900 won, and SK hynix lost 2.78 percent to 90,900 won.
 
LG Energy Solutions sank 3.21 percent to 604,000, and LG Chem decreased 1.49 percent to 726,000 won. 
 
But carmakers gathered ground after U.S. President Joe Biden said Sunday the implementation of the Inflation Reduction Act (IRA) should be discussed in consideration of Korean firms' great contribution to the U.S. economy.
 
Hyundai Motor surged 2.33 percent to 176,000 won, and its affiliate Kia jumped 2.79 percent to 69,500 won.
 
The won ended at 1,325.9 won against the dollar, up 7.5 won from the previous session's close.
 
The Kosdaq declined 1.68 points, or 0.23 percent, to close at 729.54 points.
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds increased 1.3 basis points to 3.849 percent, and the yield on 10-year government bonds rose 3.6 basis points to 3.927 percent.

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