Kospi closes up Wednesday as investors wait for Fed's next move

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,745.05 points on Wednesday, up 10.69 points, or 0.39 percent, from the previous trading session. [YONHAP]

Shares ended higher Wednesday as investors remain watchful over whether the U.S. Federal Reserve will slash key rates this year. The won fell against the dollar.

The Kospi rose 10.69 points, or 0.39 percent, to close at 2,745.05.

Trading volume was moderate at 424.75 million shares worth 10.09 trillion won ($7.4 billion), with winners outpacing losers 575 to 280.

Institutions and foreigners bought a combined 434.7 billion won worth of stocks, offsetting individuals' stock selling valued at 403.23 billion won.

Overnight, U.S. stocks ended nearly flat. The Dow Jones Industrial Average inched up 0.08 percent to 38,884.26, and the tech-heavy Nasdaq fell 0.1 percent to 16,332.56 as investors remained concerned over hawkish remarks by some Fed officials.

In Seoul, auto and energy stocks led the gains.

Kia rose 0.3 percent to 116,000 won, auto parts maker Hyundai Mobis climbed 1.5 percent to 232,000 won, LG Energy Solution gained 0.4 percent to 393,000 won and Korean Air rose 1.4 percent to 21,800 won.

Among decliners, SK hynix fell 0.9 percent to 178,000 won, the state-run Korea Electric Power Corporation declined 1.6 percent to 21,500 won, and cosmetic company AmorePacific shed 1.4 percent to 164,700 won.

Financial firms Samsung Life Insurance advanced 1.36 percent to 89,500 won and KB Financial Group moved up 5.14 percent to 77,700 won. Hana Financial Group rose 4.3 percent to 60,600 won.

Samsung Biologics added 0.76 percent to 791,000 won, and Celltrion increased 0.1 percent to 194,600 won.

Naver fell 2 percent to 190,900 won, and Kakao gained 0.2 percent to 49,800. Kakao Bank declined 0.97 percent to 25,600 won.

Game publisher Krafton gained 0.97 percent to close at 260,000 won.

The local currency closed at 1,361.50 won against the greenback, up 1.4 won from the previous session's close.

The Kosdaq gained 1.16 points, or 0.13 percent, to close at 872.42.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.1 basis points to 3.438 percent, and the return on benchmark U.S. 10-year government bonds dropped 2.9 basis points to 4.458 percent.

BY CHOI HAE-JIN, YONHAP [choi.haejin@joongang.co.kr]