SEOUL - South Korean shares concluded their three-day winning streak on Friday, closing lower amid speculations of a potential end to the Federal Reserve's aggressive rate hike campaign due to easing inflation concerns. The benchmark Korea Composite Stock Price Index (KOSPI) dropped, and the local currency remained unchanged against the U.S. dollar.
According to Yonhap News Agency, The KOSPI fell by 18.33 points, or 0.74 percent, to close at 2,469.85, with trade volume being relatively low. The trading session saw foreign investors selling local shares, while institutions and individual investors had varied trading activities. Speculations about the cooling of the U.S. economy contributed to the cautious approach among investors. Recent U.S. data, indicating a rise in unemployment benefit claims and a decrease in industrial output, influenced market sentiments. Analyst Lee Kyung-min from Daishin Securities noted that foreign investors particularly offloaded tech shares, affecting key companies like Samsung Electronics and SK hynix.
In the Seoul market, major tech and battery makers experienced declines, with LG Energy Solution and Samsung SDI among the affected. Additionally, the decrease in global oil prices led to losses for top refiners like SK Innovation and S-Oil. However, Korean Air and Jeju Air saw their stocks rise, benefiting from lower oil prices.
The local currency closed at 1,296.90 won per dollar, stable from the previous session. In the bond market, prices closed higher, with yields on three-year Treasurys and five-year government bonds showing a slight decrease.