Stocks decline on rate worries, won up against dollar

Shares closed lower on Monday on that the Federal Reserve may continue its aggressive monetary tightening following a stronger-than-anticipated U.S. jobs report. The won rose against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,419.32 points on Monday, down 15.01 points, or 0.62 percent, from the previous trading day. [YONHAP]

Shares closed lower on Monday on that the Federal Reserve may continue its aggressive monetary tightening following a stronger-than-anticipated U.S. jobs report. The won rose against the dollar.

The benchmark Kospi retreated 15.01 points, or 0.62 percent, to 2,419.32. Trading volume was moderate at 379.8 million shares worth 7.6 trillion won ($5.87 billion), with decliners outnumbering gainers 446 to 407.

Institutions sold a net 15.0 billion won of stocks and foreigners a net 292.7 billion won, while retail investors purchased a net 301.6 billion won.

Investors appear to be looking for any new clues for their asset readjustment following the release of solid jobs report in November, analysts said, which may prod the Fed to implement more aggressive monetary tightening.

In Seoul, tech and auto stocks were lead decliners. Samsung Electronics fell 0.2 percent to 60,300 won and SK hynix declined 1.1 percent to 81,000 won.

Hyundai Motor shed 2.1 percent to 165,500 won, and auto parts maker Hyundai Mobis dropped 2.1 percent to 209,000 won.

Bio stocks also closed lower. Samsung Biologics fell 4.25 percent to 833,000 won and Celltrion lost 0.29 percent to 173,500 won.

Among gainers, Korean Air rose 2.6 percent to 25,650 won and cosmetics firm Amorepacific climbed 6.1 percent to 139,500 won.

Tech stocks ended higher. Kakao gained 1.93 percent to 58,000 won and Naver added 3.23 percent to 191,500 won.

Refiner S-Oil was up 1.2 percent to 87,100 won.

The won ended at 1,292.60 won against the dollar, down 7.30 from Friday's close.

The Kosdaq added 0.37 points, or 0.05 percent, to close at 733.32 points.

Kakao Games added 2.61 percent to 43,250 won and CJ ENM gained 1.36 percent to 81,700 won. JYP Entertainment lost 0.47 percent to 64,200 won and SM Entertainment shed 0.85 percent to 81,400 won.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds remained flat at 3.617 percent, and the yield on 10-year government bonds fell 2.1 basis points to 3.564 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]