SEOUL– Seoul shares ended lower to extend their losing streak to a fifth day Wednesday amid concerns over a global recession following the Federal Reserve’s hawkish comments and Japan’s possible monetary tightening. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.34 points, or 0.19 percent, to close at 2,328.95, extending its losing streak to a fifth session.
Trading volume was moderate at 320.11 million shares worth 4.95 trillion won (US$3.8 billion), with gainers outstripping decliners 495 to 365.
Foreigners and individuals sold a combined 192 billion won worth of stocks, offsetting institutional buying valued at 184 billion won.
Investors remain wary as Fed officials indicated plans to raise the rate to a higher-than-expected level until they are confident inflation has been subdued and the Bank of Japan (BOJ) unexpectedly raised 10-year government bond yields to around 0.5 percent from the previous upper limit of 0.25 percent.
The BOJ is widely expected to raise interest rates next year, joining the Fed and other central banks after a decade of extraordinary stimulus.
“Global recession worries and continued foreign selling weighed on the KOSPI index,” Lim Seung-mi, an analyst at Hana Securities Co., said.
Tech and auto stocks were the lead decliners.
Market bellwether Samsung Electronics Co. fell 1 percent to 58,000 won, No. 2 chipmaker SK hynix Inc. declined 0.4 percent to 78,000 won, and top carmaker Hyundai Motor Co. shed 0.6 percent to 156,000 won.
Among gainers, national flag carrier Korean Air Co. rose 0.4 percent to 24,550 won, leading refiner SK Innovation Co. climbed 0.3 percent to 165,500 won, and the country’s sole aircraft manufacturer, Korea Aerospace Industries Co., added 1.6 percent to 49,600 won.
The Korean won closed at 1,285.7 won against the U.S. dollar, up 3.9 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 4.7 basis points at 3.638 percent, and the return on the benchmark five-year government bond declined 7.2 basis points to 3.546 percent.
Source: Yonhap News Agency