Stocks close nearly flat ahead of major U.S. events

Stocks closed nearly flat Wednesday as investors remained cautious ahead of the U.S. inflation announcement and rate-setting Federal Open Market Committee meeting, both scheduled for next week. The won rose to a two-month high against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,615.60 points on Wednesday, up 0.01 percent, or 0.19 points, from the previous trading session. [YONHAP]

Stocks closed nearly flat Wednesday as investors remained cautious ahead of the U.S. inflation announcement and rate-setting Federal Open Market Committee meeting, both scheduled for next week. The won rose to a two-month high against the dollar.

The Kospi rose 0.19 points, or 0.01 percent, to close at 2,615.60.

Trading volume was slim at 525.8 million shares worth 9.93 trillion won ($7.62 billion), with losers slightly outpacing gainers 439 to 422.

Institutions scooped up a net 348.97 billion won worth of local shares, while individuals dumped a net 294.5 billion won.

Analysts said investors are on their toes ahead of the two big events next week.

At the same time, a recent World Bank report forecast that the global economy will grow 2.1 percent in 2023, slowing down from 3.1 percent growth in 2022 due to lingering geopolitical situations and higher interest rates. But the bank raised its 2023 growth estimate by 0.4 percentage points from 1.7 percent.

Advanced economies, including the United States, Japan and Europe, are expected to expand only 0.7 percent this year, down from 2.6 percent in 2022.

"The Kospi started higher on the World Bank report but trimmed earlier gains on profit-taking," analyst Choi Yoon-ah from Shinhan Securities said.

In Seoul, large-cap shares finished mixed across the board.

Samsung Electronics fell 0.98 percent to close at 71,000 won, and SK hynix retreated 0.64 percent to 108,000 won.

Hyundai Motor lost 2.29 percent to 196,400 won, and Kia declined 4.87 percent to 82,000 won after news reports that the two companies have been sued by New York City for their failure to install anti-theft devices.

SK Innovation gained 3.41 percent to 206,500 won, and LG Chem rose 3.18 percent to 746,000 won.

The local currency ended at 1,303.8 won against the dollar, down 4.3 won from the previous session's close, marking the highest since April 14, when the currency rate stood at 1,298.9 won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 3.8 basis points to 3.464 percent, and the yield on the benchmark 10-year government bonds yielded 1.3 basis points to 3.673 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]