Kospi closes nearly flat ahead of U.S. inflation numbers

Finance

Kospi closes nearly flat ahead of U.S. inflation numbers

Published: 13 Sep. 2023, 17:30 Updated: 13 Sep. 2023, 17:31

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,534.7 points on Wednesday, down 0.07 percent, or 1.88 points, from the previous trading session. [NEWS1]

Stocks closed a tad lower Wednesday as investors remained cautious over U.S. inflation data for August, looking for clues regarding the Federal Reserve's future monetary policy. The won fell against the dollar.

The benchmark Kospi lost 1.88 points, or 0.07 percent, to finish at 2,534.7.

Trading volume was moderate at 411.2 million shares worth 9.09 trillion won ($6.83 billion), with decliners outnumbering gainers 549 to 321.

Stocks open higher as Wall Street loses ground before U.S. inflation data

Individuals sold a net 184.4 billion won worth of local shares, while foreign and institutional investors scooped up a combined net 165.3 billion won.

The upcoming U.S. consumer price index for August, set to come later in the day, weighed heavily on Wall Street overnight as the data is expected to provide clues about the Federal Reserve's tightening policy before its rate-setting policy meeting next week.

All three U.S. stock indexes closed lower Tuesday, with the Nasdaq tumbling more than 1 percent.

"On Wall Street, tech shares led the decline due to rising oil prices and increasing pressure on interest rates," Shinhan Securities analyst Noh Dong-gil said.

"Investors will likely maintain their cautious mode until the Fed's meeting next week."

In Seoul, large-cap stocks traded mixed across the bourse.

Samsung Electronics rose 0.6 percent to 70,900 won and SK hynix jumped 1.5 percent to 118,500 won.

Hyundai Motor advanced 1.9 percent to 189,800 won and Kia gained 1 percent to 78,500 won.

Naver added 1.1 percent to 222,000 won and LG Electronics spiked 5.3 percent to 104,200 won.

Among decliners, LG Energy Solution lost 1 percent to 494,500 won and LG Chem shed 3.4 percent to 540,000 won. Samsung SDI remained flat at 558,000 won.

Posco Holdings tumbled 3.1 percent to 529,000 won and Posco Future M dropped 2.5 percent to 387,000 won.

The local currency ended at 1,330 won against the dollar, up 2.2 won from Tuesday's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 0.8 basis points to 3.9 percent, and the yield on the benchmark 10-year U.S. government bonds lost 0.4 basis points to 4.3 percent.

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