Shares end lower Wednesday amid concerns over a global recession

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,328.95 points on Wednesday, down 4.34 points, or 0.19 percent, from the previous trading day. [YONHAP]

Shares ended lower Wednesday to extend their losing streak to a fifth day amid concerns over a global recession following the Federal Reserve's hawkish comments and Japan's possible monetary tightening. The won rose against the dollar.

The Kospi fell 4.34 points, or 0.19 percent, to close at 2,328.95, extending its losing streak to a fifth session.

Trading volume was moderate at 320.11 million shares worth 4.95 trillion won (US$3.8 billion), with gainers outstripping decliners 495 to 365.

Foreigners and individuals sold a combined 192 billion won worth of stocks, offsetting institutional buying valued at 184 billion won.

Investors remain wary as Fed officials indicated plans to raise the rate to a higher-than-expected level until they are confident inflation has been subdued and the Bank of Japan (BOJ) unexpectedly raised 10-year government bond yields to around 0.5 percent from the previous upper limit of 0.25 percent.

The BOJ is widely expected to raise interest rates next year, joining the Fed and other central banks after a decade of extraordinary stimulus.

"Global recession worries and continued foreign selling weighed on the Kospi index," Lim Seung-mi, an analyst at Hana Securities, said.

Tech and auto stocks were the lead decliners.

Samsung Electronics fell 1 percent to 58,000 won, and SK hynix declined 0.4 percent to 78,000 won.

Hyundai Motor shed 0.6 percent to 156,000 won and Kia also lost 0.64 percent to 62,000 won.

LG Energy Solution, battery maker, shed 2.15 percent to 477,000 won.

Among gainers, national flag carrier Korean Air rose 0.4 percent to 24,550 won, SK Innovation climbed 0.3 percent to 165,500 won, and Korea Aerospace Industries added 1.6 percent to 49,600 won.

The won closed at 1,285.7 won against the dollar, down 3.9 won from the previous session's close.

The Kosdaq climbed 2.57 points, or 0.37 percent, to close at 705.70 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 4.1 basis points to 3.646 percent, and the yield on the benchmark 10-year government bonds increased 10.3 basis points to 3.688 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]