Korean stocks extend losing streak to third day on Tuesday

Shares closed lower to extend their losing streak to a third day on Tuesday as investors remain concerned that the Federal Reserve may continue its aggressive monetary tightening following unexpectedly strong U.S. services data.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,393.16 points on Tuesday, down 26.16 points, or 1.08 percent, from the previous trading day. [NEWS1]

Shares closed lower to extend their losing streak to a third day on Tuesday as investors remain concerned that the Federal Reserve may continue its aggressive monetary tightening following unexpectedly strong U.S. services data. The won fell against the dollar.

The benchmark Kospi retreated 26.16 points, or 1.08 percent, to 2,393.16. Trading volume was moderate at 359.75 million shares worth 6.3 trillion won ($4.8 billion), with decliners outnumbering gainers 753 to 140.

Institutions offloaded a net 307.8 billion won worth of stocks and foreigners a net 96.1 billion won, while retail investors purchased a net 379.6 billion won.

Upbeat service industry activity bolstered the case for the Fed to keep policy tightening to tame runaway inflation. Such rate worries and the dollar's strength weighed on investor sentiment, analysts said.

Investors now await the U.S. producer price report Friday, local time, as it will be some of the major economic data Fed officials see before the Dec. 13-14 policy meeting, they said.

In Seoul, large-cap stocks were mixed across the board.

Samsung Electronics fell 1.82 percent to 59,200 won, and SK hynix remained flat at 81,000 won.

Hyundai Motor declined 0.6 percent to 164,500 won, and its affiliate Kia fell 0.76 percent to 65,100 won. Korean Air dropped 2 percent to 25,150 won, and SK Innovation shed 0.6 percent to 170,500 won.

Tech stocks closed lower. Naver shed 3.13 percent to 185,500 won, and Kakao lost 3.45 percent to 56,000 won.

Among gainers, LG Electronics rose 0.4 percent to 97,200 won. Korea Aerospace Industries climbed 0.3 percent to 46,850 won, and budget carrier Jin Air was up 1.7 percent to 15,000 won. SK Bioscience rose 2.66 percent to 84,800 won.

The won ended at 1,318.80 won against the dollar, up 26.20 won from the previous day's close.

The Kosdaq fell 13.88 points, or 1.89 percent, to close at 719.44 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds remained added 1.7 basis points to 3.634 percent, and the yield on 10-year government bonds fell 6.1 basis points to 3.503 percent.

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