Shares extend winning streak to sixth day ahead of release of U.S. CPI

Shares ended higher Wednesday, extending their winning streak to a sixth day, with investors awaiting the release of the new U.S. consumer price index (CPI) for clues on the future of the Federal Reserve's monetary policy. The won fell against the...

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,359.53 points on Wednesday, up 8.22 points, or 0.35 percent, from the previous trading day. [YONHAP]

Shares ended higher Wednesday, extending their winning streak to a sixth day, with investors awaiting the release of the new U.S. consumer price index (CPI) for clues on the future of the Federal Reserve's monetary policy. The won fell against the dollar.

The Kospi added 8.22 points, or 0.35 percent, to close at 2,359.53 points.

Trading volume was moderate at 359.99 million shares worth some 6.2 trillion won ($4.97 billion), with gainers outnumbering losers 602 to 246.

Analysts said the Fed will likely slow the pace of its interest rate hikes if Thursday's CPI data shows any signs of a cooldown.

"Institutions' stock purchases supported the main index though retail investors offloaded more stocks on profit-taking ahead of the key inflation report," Park Hee-cheol, an analyst at Mirae Asset Securities said.

Institutions and foreigners bought a combined 207 billion won worth of stocks, offsetting individuals' stock selling valued at 206 billion won.

Tech, auto and airline stocks led the gains.

Samsung Electronics rose 0.2 percent to 60,500 won, chipmaker SK hynix climbed 0.9 percent to 87,300 won, carmaker Hyundai Motor gained 0.6 percent to 164,000 won, Kia advanced 0.47 percent to 64,200 won and refiner SK Innovation moved up 3.4 percent to 153,500 won.

LG Chem increased 0.79 percent to 634,000 won, Lotte Chemical climbed 0.27 percent to 186,000 won and Celltrion advanced 0.91 percent to 166,500 won.

Among decliners, the state-run Korea Electric Power Corp. fell 0.8 percent to 19,550 won, wireless services provider SK Telecom shed 0.9 percent to 46,500 won, and Hyundai Engineering & Construction dropped 2.6 percent to 37,350 won.

The local currency closed at 1,246.20 won against the dollar, up 1.5 won from the previous session's close.

The Kosdaq climbed 13.72 points, or 1.97 percent, to close at 709.77 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 7.5 basis points to 3.481 percent, and the yield on the benchmark 10-year government bonds gained 8.2 basis points to 3.619 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]