Kopsi closes up slightly with positive U.S. inflation data

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,747.86 points on Monday, up 0.04 percent, or 1.23 points, from the previous trading session. [YONHAP]

Stocks closed higher Monday as U.S. inflation data fell in line with market expectations, raising hopes that the U.S. Federal Reserve may start cutting interest rates in June at the earliest, while the won fell against the dollar.

The Kospi rose 1.23 points, or 0.04 percent, to close at 2,747.86.

Trade volume was slim at 391.77 million shares worth 9.9 trillion won ($7.3 billion), with gainers outpacing losers 573 to 295.

Institutions and foreigners bought a combined 294 billion won worth of stocks, offsetting individuals' stock selling valued at 317.11 billion won.

The U.S. personal consumption expenditures index for February, released Friday, corresponded roughly to market expectations.

The U.S. central bank is widely expected to make this year's first rate cut in June.

In Seoul, airlines and domestic-focused stocks led the gains.

Hanjin KAL jumped 3.36 percent to 61,500 won and Korean Air rose 1.61 percent to 22,050 won.

Amorepacific jumped 6.34 percent to 129,100 won and the Korea Electric Power Corporation was up 0.45 percent to 22,100 won.

SK hynix gained 1.37 percent to 185,500 won and LG Energy Solution rose 0.13 percent to 395,500 won.

Hanmi Semiconductor jumped 6.43 percent to 142,300 won.

Among the decliners, Samsung Electronics fell 0.49 percent to 82,000 won.

Hyundai Motor declined 2.36 percent to 227,500 won and Kia fell 1.36 percent to 108,700 won.

Posco Holdings shed 0.95 percent to 418,000 won, while HD Hyundai was down 1.95 percent to 70,500 won.

Pharmaceutical firms fell into negative territory, with Samsung Biologics losing 1.81 percent to 816,000 won and Celltrion falling 1.62 percent to 188,100 won.

Battery makers closed mixed as LG Energy Solution slightly moved up 0.13 percent to 395,500 won and Samsung SDI dropped 3.61 percent to 454,000 won.

The local currency closed at 1,349.40 won against the greenback, up 2.2 won from the previous session's close.

The Kosdaq gained 6.95 points, or 0.77 percent, to close at 912.45.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 3.5 basis points to 3.287 percent and the return on the benchmark U.S. 10-year government bonds gained 1.1 basis points to 4.201 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]