Kospi slides 1.2% as investors await U.S. inflation data

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,712.14 points on Thursday, down 32.91 points, or 1.2 percent, from the previous trading session. [YONHAP]

Shares declined by more than 1 percent on Thursday as investors remained concerned over the future course of the U.S. key rates ahead of the release of inflation data next week. The local currency fell against dollar.

The Kospi fell 32.91 points, or 1.2 percent, to close at 2,712.14.

Trading volume was moderate at 413 million shares worth 10.9 trillion won ($7.95 billion), with losers outpacing gainers 531 to 355.

Foreign investors offloaded a net 354 billion won worth of local shares, snapping a streak of seven consecutive sessions of buying. Retail investors purchased a net 415 billion won, while institutions sold a net 75.9 billion won.

Overnight, Federal Reserve Bank of Boston President Susan Collins said that reaching the inflation target of 2 percent may take longer than previously thought.

"Susan Collins' hawkish comments raised concerns about prolonged monetary tightening, dampening investors' appetite for risky assets," said Lee Jae-won, an analyst from Shinhan Securities.

Analysts also attributed the decline to the expiration of options.

Samsung Electronics moved down 1.97 percent to 79,700 won, and SK hynix shed 1.46 percent to 175,400 won.

Naver dropped 1.36 percent to 188,300 won amid Japan's pressure on the firm following last year's data leakage incident involving the messaging app Line. Kakao lost 2.41 percent to 48,600 won, while Kakao Bank dropped 6.05 percent to 24,050 won.

Carmakers finished sharply lower as well, with Hyundai Motors losing 2.07 percent to 237,000 won and Kia falling 3.71 percent to 111,700 won.

Energy firms, on the other hand, closed bullish, with the Korea Electric Power Corporation rising 1.4 percent to 21,800 won and Korea Gas advancing 1.27 percent to 27,950 won.

Game publisher Krafton gained 1.35 percent to 263,500 won.

The local currency closed at 1,370.1 won against the greenback, up 8.6 won from the previous session's close.

The Kosdaq lost 2.27 points, or 0.13 percent, to close at 870.15.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.4 basis points to 3.452 percent, and the return on benchmark U.S. 10-year government bonds dropped 4 basis points to 4.497 percent.

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