Kospi loses over concerns about U.S. Fed's rate direction

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Kospi loses over concerns about U.S. Fed's rate direction

Published: 06 Mar. 2024, 18:04

KIM JI-YE
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,641.49 points on Wednesday, down 0.30 percent, or 7.91 points, from the previous trading session. [YONHAP]

Stocks closed lower Wednesday as investors waited for clues on the U.S. Federal Reserve's future rate direction, with tech and chemical shares leading the overall decline. The local currency closed flat against the U.S. dollar.

The Kospi lost 7.91 points, or 0.3 percent, to 2,641.49.

Trade volume was low at 364 million shares worth 9.8 trillion won ($7.38 billion), with losers outpacing gainers 606 to 282.

Foreigners offloaded 374.4 billion-won worth of stocks, ending their buying eight-session buying streak. Individuals, on the other hand, bought 533.6 billion won, while institutions sold a net 211.9 billion won.

U.S. Fed Chairman Jerome Powell is set to deliver a testimony to Congress on Wednesday (U.S. time), with major shares sharply losing ground on Wall Street overnight.

Analysts said investors were also disappointed by the results of China's national committee meeting held the previous day.

"The stimulus measures were lackluster, and (the committee) failed to show bold innovation in terms of industrial policies," said Juhn Jong-kyu, a researcher at Samsung Electronics.

In Seoul, Samsung Electronics moved down 1.09 percent to 72,900 won, and SK hynix slid 1.75 percent to 162,900 won.

LG Energy Solution edged down 0.13 percent, and Samsung SDI shed 0.55 percent to 364,500 won.

Chemical shares closed mostly bearish as well, with LG Chem falling 2.43 percent to 441,500 won and SK Innovation losing 1.45 percent to 115,700 won.

Hyundai Motors gained 0.80 percent to 251,000 won and Kia jumped 3.25 percent to 127,000 won.

Hanwha Aerospace, on the other hand, gained 10.09 percent to 204,000 won on the back of rising hopes for the space industry, and Korea Aerospace Industries added 5.69 percent to 53,900 won.

The local currency ended at 1,334.5 won against the greenback, remaining flat from the previous session's close.

The Kosdaq gained 4.30 points, or 0.50 percent, to close at 870.67.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 2.0 basis points to 3.326 percent, and the return on the benchmark 10-year government bonds lost 6.1 basis points to 4.152 percent.

BY KIM JI-YE, YONHAP [[email protected]]