Stocks down Wednesday on worries over higher borrowing rates

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,417.68 points on Wednesday, down 41.28 points, or 1.68 percent, from the previous trading day. [YONHAP]

Stocks closed markedly lower Wednesday on worries over higher borrowing rates ahead of the release of the Federal Reserve's latest minutes. The local currency lost ground against the dollar.

The benchmark Kospi shed 41.28 points, or 1.68 percent, to close at 2,417.68.

Trading volume was moderate at 414.1 million shares worth 8.19 trillion won ($6.28 billion), with losers far outpacing gainers 757 to 147.

Institutions and foreign investors combined sold off a net 928.14 billion won worth of shares, while retail investors bought a net 887.3 billion won.

Wall Street dropped overnight as investor sentiment was hurt by the prospect that the Fed might keep rates elevated for longer than feared to tame stubborn inflation.

The Fed is scheduled to release its latest minutes on Wednesday, which could provide clues about the U.S. monetary tightening policy down the road.

In Seoul, most top-cap shares finished down.

Samsung Electronics shed 1.61 percent to close at 61,100 won, and chip maker SK hynix declined 2.3 percent to 89,100 won.

Battery maker LG Energy Solution declined 2.31 percent to 508,000 won, and LG Chem shed 3.06 percent to 666,000 won.

Bio firm Samsung Biologics lost 1.5 percent to 788,000 won, and Celltrion fell 3.75 percent to 149,000 won.

Automaker Hyundai Motor went down 2.24 percent to 174,200 won, and its affiliate Kia shed 2.74 percent to 74,500 won.

The Kosdaq lost 14.91 points, or 1.88 percent, to close at 778.51.

The local currency ended at 1,304.9 won against the dollar, up 9 won from the previous session's close. The won surpassed the 1,300 won mark for the first time since Dec. 19.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 3.2 basis points to 3.656 percent, and the return on the benchmark 10-year government bonds climbed 13.4 basis points to 3.954 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]