Stocks close lower over fresh inflation jitters

Stocks closed lower Wednesday on new inflation woes stirred by rising global oil prices and U.S. central bankers' hawkish comments. The won rose against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,563.34 points on Wednesday, down 0.73 percent, or 18.84 points, from the previous trading session. [YONHAP]

Stocks closed lower Wednesday on new inflation woes stirred by rising global oil prices and U.S. central bankers' hawkish comments. The won rose against the dollar.

The benchmark Kospi Index shed 18.84 points, or 0.73 percent, to close at 2,563.34.

Trading volume was moderate at 415.9 million shares worth 7.55 trillion won ($5.66 billion), with losers outpacing gainers 588 to 288.

Institutions and foreigners sold a net 306.31 billion won and 69.52 billion worth of shares, respectively, while retail investors bought a net 341.45 billion won worth of shares.

Investor sentiment became weak as global oil prices rose to the highest level since late 2022 after the Organization for the Petroleum Exporting Countries Plus vowed to extend supply cuts.

"Inflationary pressures will dash investors' hope for the Federal Reserve to ease its aggressive monetary tightening. Uncertainties regarding macroeconomic circumstances would limit the rise of the Kospi," Kiwoom Securities analyst Han Ji-young said.

Fed Gov. Christopher Waller said Tuesday the central bank has room to proceed carefully with its monetary tightening given recent economic data.

Federal Bank of Cleveland President Loretta Mester added the Fed may need to raise the interest rate further.

In Seoul, large-cap tech and battery stocks drove the bourse down.

Samsung Electronics shed 1 percent to 70,000 won and SK hynix also lost 1 percent to 118,200 won.

LG Energy Solution sank 1.7 percent to 527,000 won and Posco Holdings tumbled 2.9 percent to 580,000 won.

Samsung SDI went down 2.1 percent to 603,000 won and LG Chem retreated 1.2 percent to 585,000 won.

Carmakers closed mixed, with Hyundai Motor rising 0.1 percent to 186,700 won and Kia falling 0.3 percent to 78,900 won.

Naver rose 0.9 percent to 214,000 won and Kakao added 0.3 percent to 49,050 won.

The local currency ended at 1,330.5 won against the dollar, down 0.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds dropped 0.4 basis points to 3.8 percent, and the yield on the benchmark 10-year government bonds jumped 7.9 basis points to 4.3 percent.

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