SEOUL, South Korea — South Korean shares ended slightly lower on Friday as investors exhibited caution ahead of the release of key U.S. employment data. The local currency, however, saw a rebound against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 7.02 points, or 0.26 percent, to close at 2,676.63.
According to Yonhap News Agency, an analyst at SK Securities, the market's tentative behavior was influenced by preliminary U.S. job market data indicating a slowdown, which could shift the Federal Reserve's focus from inflation to employment. "The anticipation hinges on whether tonight's employment data will underperform market expectations and potentially foster hopes for a future rate cut," Yoon noted. The trading volume was notably low, with 329.8 million shares traded, valued at 7.7 trillion won (approximately US$5.65 billion). The session saw 477 stocks decline and 390 advance.
Foreign investors bought a net 88.8 billion won worth of shares, marking their fifth consecutive buying session, while retail investors and institutions sold off shares worth 116.2 billion won and 8.1 billion won, respectively. Large caps showed mixed results; Samsung Electronics dropped by 0.51 percent and SK hynix by 0.23 percent, whereas LG Energy Solution climbed by 0.51 percent and Samsung SDS by 0.25 percent. Automotive stocks like Hyundai Motor and Kia Motors fell sharply by 3.21 percent and 4.77 percent, respectively.
Financial stocks, however, saw gains with KB Financial and Shinhan Financial rising by 1.94 percent and 1.42 percent, respectively. The local currency strengthened to close at 1,362.80 won against the dollar, gaining 13.10 won. Bond prices rose, leading to a decrease in yields; the yield on three-year Treasury bonds fell slightly by 0.9 basis points to 3.50 percent, and the yield on five-year government bonds decreased by 1.4 basis points to 3.549 percent.