Stocks end lower as Fed minutes show no sign of rate cuts

Shares ended lower for a third straight day Friday after robust employment data weighed on expectations for an early rate cut by the U.S. Federal Reserve this year. The won fell in value against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,578.08 points on Friday, down 0.35 percent, or 8.94 points, from the previous trading session. [NEWS1]

Shares ended lower for a third straight day Friday after robust employment data weighed on expectations for an early rate cut by the U.S. Federal Reserve this year. The won fell in value against the dollar.

The Kospi fell 8.94 points, or 0.35 percent, to close at 2,578.08. The Kospi has fallen 2.9 percent this week.

Trade volume was moderate at 514.78 million shares worth 8.27 trillion won ($6.28 billion), with losers outpacing winners 515 to 343.

Overnight, U.S. stocks ended mixed. The Dow Jones Industrial Average inched up 0.03 percent to 37,440.34, but the tech-heavy Nasdaq declined 0.6 percent to 14,510.30.

Non-official employment data showed U.S. companies hired more in December and that jobless claims were lower than expected.

Earlier this week, the Fed's minutes from its December meeting indicated rates could remain at high levels for some time and that rate cuts may come later this year.

"The market is undergoing a correction following gains late last year amid high expectations of rate cuts early this year. Investors now await official jobs data due later in the day for any changes in the Fed's future rate plans," Park Hee-cheol, an analyst with Mirae Asset Securities, said.

Institutions and foreigners sold a combined 616 billion won worth of stocks, offsetting individuals' stock purchases valued at 598 billion won.

In Seoul, auto and energy stocks led declines.

Hyundai Motor fell 1.4 percent to 187,300 won, Hyundai Mobis declined 0.5 percent, LG Energy Solution dropped 0.7 percent, and state-run Korea Gas Corporation shed 0.4 percent.

Among gainers, SK hynix rose 0.8 percent, Hanatour Service jumped 3.7 percent to 54,000 won, Modetour gained 1.3 percent to 15,670 won, and Jeju Air jumped 5.5 percent to 12,430 won.

The local currency traded at 1,315.40 won against the dollar, up 5.40 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 6.0 points to 3.284 percent, and the return on benchmark U.S. 10-year government bonds gained 7.9 points to 3.997 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]