Kospi closes up, local currency strengthens as investors wait for U.S. rate clues

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Friday. [YONHAP]

Shares ended higher Friday as investors waited for clues about the direction of the U.S. rate decision with key data due later in the day. The local currency rose sharply in value against the dollar.

The Kospi added 8.02 points, or 0.29 percent, to 2,792.08.

Trade volume was moderate at 601.1 million shares worth 10.8 trillion won ($7.8 billion), with winners outnumbering losers 578 to 294.

Foreigners and institutions purchased local shares worth 29.2 billion won and 240.9 billion won, respectively, offsetting institutions' sell-off of 280.4 billion won.

Overnight, Wall Street closed slightly higher as the U.S. personal consumption expenditures (PCE) price index for May was set to be released Friday (U.S. time), offering the latest clues on the Federal Reserve's monetary policy direction.

Experts said the Kospi moved without clear direction as investors were in a wait-and-see mode ahead of the PCE data.

Most sectors gained ground, offsetting a decline in big-cap tech and auto shares.

The food sector jumped 2.47 percent, with securities and insurance shares up 2.33 percent and 2.29 percent, respectively.

Financial shares increased 1.55 percent, and chemical shares gained 0.88 percent.

But Samsung Electronics lost 0.12 percent to 81,500 won, with SK hynix flat at 236,500 won, affected by overnight losses of U.S. AI chip giants Nvidia and Micron Technology.

Hyundai Motor dropped 1.01 percent to 295,000 won, and Kia retreated 1.67 percent to 129,300 won on investors' profit-taking following a recent rally.

LG Energy Solution also dipped 0.46 percent to 326,500 won, and Samsung SDI pulled back 1.94 percent to 354,000 won.

The local currency ended at 1,376.70 won against the greenback, down 9.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 3.9 basis points to 3.181 percent, and the return on the benchmark U.S. 10-year government bonds dropped 4.3 basis points to 4.287 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]