Stocks down as investors await U.S. inflation data

Stocks closed lower Thursday as investors maintained a wait-and-see strategy ahead of the U.S. inflation data announcement later in the day. The won fell against the dollar. The benchmark Kospi dropped 3.56 points, or 0.14 percent, to 2,601.56.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,601.56 points on Thursday, down 0.14 percent, or 3.56 points, from the previous trading session. [YONHAP]

Stocks closed lower Thursday as investors maintained a wait-and-see strategy ahead of the U.S. inflation data announcement later in the day. The won fell against the dollar.

The benchmark Kospi dropped 3.56 points, or 0.14 percent, to 2,601.56. Trading volume was moderate at 560.4 million shares worth 11.2 trillion won ($8.5 billion), with winners outpacing losers 486 to 393.

Offshore investors and institutions dumped a combined 247.2 billion won worth of local shares, while individuals purchased a net 264.5 billion won.

Wall Street saw its major stock indices drop on investor caution a day before the U.S. consumer price index (CPI) report.

Analysts said the Kospi was also dragged down by a wait-and-see stance and profit-hunting after a 1.2 percent jump the previous day.

"Investors here have kept a wary eye on key factors like the upcoming CPI report and the movement of U.S. markets," Kiwoom Securities analyst Han Ji-young said. "And they hunted for profit following the previous day's rally."

In Seoul, large-cap tech shares led the decline.

Samsung Electronics fell 1.31 percent to 68,000 won, Samsung SDI lost 1.89 percent to 622,000 won and Posco Future M dropped 0.88 percent to 452,000 won.

Naver sank 1.1 percent to 225,000 won and Kakao retreated 0.38 percent to 52,600 won.

Retailers and hotel operators were strong on reports that the Chinese government lifted a yearslong ban on group travel to Korea.

Lotte Shopping jumped 5.79 percent to 76,800 won and Shinsegae surged 9.33 percent to 211,000 won.

Hotel Shilla soared 17.3 percent to 86,800 won and Lotte Tour Development shot up by the daily limit of 29.99 percent to 13,350 won.

Cosmetics firms also rose, with LG Household & Health Care gaining 13.31 percent to 498,000 won and Amore Pacific climbing 7.76 percent to 130,500 won.

The local currency ended at 1,316 won against the dollar, up 0.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds advanced 2.2 basis points to 3.692 percent, and the yield on the benchmark 10-year government bonds shed 1.9 basis points to 4.012 percent.

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