Shares end lower Monday for third consecutive day

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,352.17 points on Monday, down 7.85 points, or 0.33 percent, from the previous trading day. [YONHAP]

Shares ended lower to extend their falls for the third consecutive day Monday as investors remain concerned the U.S. Federal Reserve's additional rate hikes could result in a global recession next year. The won rose against the dollar.

The Kospi fell 7.85 points, or 0.33 percent, to close at 2,352.17, extending its losing streak to a third session.

Trading volume was moderate at 312.32 million shares worth 4.85 trillion won ($3.72 billion), with decliners outstripping gainers 566 to 303.

On Friday, the Dow Jones Industrial Average dropped 0.8 percent to 32,920.46, and the tech-heavy Nasdaq Composite lost 1 percent to 10,705.41.

Last week, the Fed signaled its plans for additional interest rate hikes next year with a warning of an economic slowdown. Fed officials forecast rates would end next year in a range of 5 percent to 5.25 percent, a higher level than previously indicated.

The risk of higher interest rates is fueling investor concerns over a U.S. recession in 2023 and reducing the appetite for risky assets, analysts said.

"A wave of rate hikes and hawkish comments from other central banks, such as the European Central Bank, added to the woes of investors. Falls in the Chinese stock market also weighed on the sentiment," Park Hee-cheol, an analyst at Mirae Asset Financial Group, said.

Large-cap stocks were mixed across the board.

Samsung Electronics remained unchanged at 59,500 won, SK hynix rose 0.8 percent to 79,000 won, and Korean Aerospace Industries advanced 3.4 percent to 48,900 won.

Among decliners, carmaker Hyundai Motor fell 2.2 percent to 159,000 won, tiremaker Hankook Tire & Technology shed 0.9 percent to 33,250 won, and Amorepacific was down 0.4 percent to 132,000 won.

The won ended at 1,302.90 won against the dollar, up 2.50 won from the previous session's close.

The Kosdaq fell 0.19 points, or 0.03 percent, to close at 717.22 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 0.7 basis points to 3.545 percent, and the yield on the benchmark 10-year government bonds increased 4.0 basis points to 3.487 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]