Seoul stocks down for 3rd day on growing rate hike fears

SEOUL,– Seoul stocks closed lower for a third straight session Friday as investors grappled with renewed fears over faster rate hikes by the Federal Reserve. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed down 24.50 points, or 1.01 percent, to 2,394.59. The index fell 2.36 percent over the past five days.

Trading volume was moderate at 403.7 million shares worth 7.72 trillion (US$5.8 billion), with decliners far outnumbering gainers 785 to 117.

Institutional and foreign investors sold a net 562 billion won, while retail investors purchased a combined net 511.9 billion won.

Overnight, Wall Street closed sharply down after jobless claims showed that the U.S. labor market is still resilient, casting uncertainty over the Fed’s rate hike path.

Investors are also awaiting U.S. jobs data due later in the day, which will set the overall tone for the Fed’s monetary tightening direction.

Most market heavyweights closed lower across the board.

Market bellwether Samsung Electronics inched down 1 percent to 59,500 won, and chipmaker SK hynix declined 2.69 percent 83,300 won.

Top carmaker Hyundai Motor declined 0.74 percent to 175,000 won, and bio firm Celltrion lost 1.59 percent to 154,700 won.

Battery companies gained ground. LG Energy Solution, a major EV battery maker, gained 0.36 percent to 551,000 won, and its local rival Samsung SDI rose 0.68 percent to 737,000 won. SK Innovation, the parent company of battery maker SK On, jumped 5.22 percent to 173,500 won.

The local currency closed at 1,324.2 won against the U.S. dollar, down 2 won from the previous session’s close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 15.5 basis points to 3.703 percent, while the return on the benchmark five-year government bonds inched down 20 basis points to 3.617 percent.

Source: Yonhap News Agency