SEOUL– Seoul shares ended lower Wednesday as investors assess hot U.S. inflation data and the Federal Reserve’s commentary suggesting further rate hikes to tame inflation. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 37.74 points, or 1.53 percent, to close at 2,427.90.
Trading volume was moderate at 380 million shares worth 8.64 trillion won (US$6.7 billion), with decliners outpacing gainers 803 to 108.
Overnight, U.S. stocks ended mixed, with the Dow Jones Industrial Average falling 0.5 percent to 34,089.27 and the tech-heavy Nasdaq Composite rising 0.6 percent to 11,960.15.
The U.S. Consumer Price Index (CPI) data showed prices advanced by a higher-than-expected 0.5 percent in January. The Fed said it is not done yet in its monetary tightening to battle inflation.
Institutions and foreigners sold more than 1 trillion won worth of stocks, fully offsetting individuals’ stock purchases valued at 1 trillion won.
“The January CPI data weighed on investor sentiment. Investors now await the next key inflation data for February, which will be released before the Fed’s rate-setting meeting on March 22 to take a cue in their future investments,” Kim Young-hwan, an analyst at NH Investment & Securities Co., said over the phone.
In Seoul, most top-cap shares finished lower.
Market bellwether Samsung Electronics Co. fell 1.6 percent to close at 62,200 won, No. 2 chipmaker SK hynix Inc. declined 1.6 percent to 91,700 won, top carmaker Hyundai Motor Co. dropped 0.6 percent to 172,700 won, and leading refiner SK Innovation Co. shed 7.5 percent to 155,000 won.
Among gainers, leading steelmaker POSCO Holdings rose 6 percent to 325,500 won, No. 2 steel mill Hyundai Steel Co. gained 0.9 percent to 34,550 won, and leading car battery maker LG Energy Solution climbed 0.4 percent to 527,000 won.
The local currency traded at 1,282.2 won against the U.S. dollar, down 12.8 won from the previous session’s close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 7.3 basis points to 3.502 percent, and the return on the benchmark five-year government bonds climbed 7.9 basis points to 3.500 percent.
Source: Yonhap News Agency