Markets flat after eight-session losing streak

Shares closed nearly flat after an eight-session losing streak, even as cooler-than-expected U.S. inflation data raised hopes for rate cuts by the Federal Reserve. Battery and refiner stocks led declines. The won fell in value against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,525.99 points on Monday, up 0.04 percent, or 0.94 points, from the previous trading session. [NEWS1]

Shares closed nearly flat Monday after an eight-session losing streak, as cooler-than-expected U.S. inflation data buoyed hopes for rate cuts by the Federal Reserve. The won fell in value against the dollar.

The benchmark Kospi edged up 0.94 points, or 0.04 percent, to close at 2,525.99.

The Kosdaq lost 8.37 points, or 0.96 percent, to close at 859.71.

Trade volume was moderate at 788.29 million shares worth 8.05 trillion won ($6.09 billion), with losers outnumbering gainers 575 to 304.

Institutions bought a net 89.73 billion won worth of stocks, offsetting foreigners and individuals' stock selling valued at 96.89 billion won.

The U.S. inflation data released Friday (U.S. time) boosted hopes of an early rate cut in the first quarter, analysts said.

“Despite the buoyed hopes for rate cuts (this year), losses in battery stocks kept the Kospi from rising further in the domestic market,” said Lee Jae-won, an analyst at Mirae Asset Securities.

Battery and refiner stocks led declines in Seoul.

Car battery maker LG Energy Solution fell 3.3 percent to 399,500 won, while Samsung SDI declined 2 percent to 400,000 won.

Battery materials maker Posco Future M dropped 2.6 percent to 306,000 won, and refiner SK Innovation shed 1 percent to 123,400 won.

Samsung Biologics gained 2.69 percent to 764,000 won while Celltrion fell 4.47 percent to 188,100 won and LG Chem slipped down 2.34 percent to 438,500 won.

Samsung Electronics rose 1.1 percent to 73,900 won, while SK hynix stayed flat at 134,100 won.

EcoPro slid 6.07 percent to close at 216,500 won.

Carmaker Hyundai Motor rose 0.8 percent to 187,500 won, Kia gained 2.94 percent to 90,900 won and Korean Air climbed 0.4 percent to 22,950 won.

The local currency closed at 1,320.20 won against the dollar, up 6.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.8 points to 3.188 percent, and the return on the benchmark U.S. 10-year government bonds dropped 2.8 points to 3.942 percent.

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