Kospi up while investors await inflation data, Fed action

Shares ended slightly higher Tuesday as investors took a wait-and-see stance with U.S. inflation data expected to affect the U.S. Federal Reserve's rate-setting decision. The won dropped in value against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,730.34 points on Tuesday, up 0.11 percent, or 3.13 points, from the previous trading session.[YONHAP]

Shares ended slightly higher Tuesday as investors took a wait-and-see stance with U.S. inflation data expected to affect the U.S. Federal Reserve's rate-setting decision. The won dropped in value against the dollar.

The Kospi went up 3.13 points, or 0.11 percent, to 2,730.34. The Kosdaq gained 7.72 points, or 0.9 percent, to end at 862.15.

Trade volume was slim at 436.6 million shares worth 9.3 trillion won ($6.79 billion), with gainers outpacing decliners 526 to 342. Foreign investors and institutions scooped up a net 80.8 billion won and 119.9 billion won worth of local shares, respectively, while individuals dumped a net 186.1 billion won.

Experts said investors are awaiting the release of the U.S. consumer price index (CPI), which would set the overall tone for the Fed's future rate policy.

"Along with the upcoming CPI data, the Korean stock market is also watching big issues, such as Washington's tariff action against China and Beijing's stimulation packages," Lee Jae-won, an analyst at Shinhan Securities, said.

Market heavyweights traded in mixed territory.

Samsung Electronics fell 0.13 percent to 78,300 won, while SK hynix increased 0.82 percent to 185,300 won.

Hyundai Motor climbed 0.61 percent to 246,500 won, but Kia dropped 0.35 percent to 113,900 won.

LG Energy Solution rose 1.05 percent to 385,500 won and Posco Future M retreated 0.54 percent to 274,500 won.

Naver edged up 0.05 percent to 184,400 won amid a continued stake sale dispute with Japan's Line operator, while Kakao declined 0.74 percent to 46,650 won. Samsung SDS gained 3.59 percent to 161,600 won.

Financial shares lost ground, with KB Financial Group sliding 2.45 percent and Hana Financial Group plunging 3.46 percent.

The local currency ended at 1,369.1 won against the dollar, up 0.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.4 basis points to reach 3.454 percent. The return on benchmark U.S. 10-year government bonds decreased by 0.9 basis points to 4.489 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]