Kopsi closes down on Wall Street losses

Investors held back ahead of a holiday weekend over U.S. economic data indicating inflation remains high.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,642.36 points on Thursday, down 0.37 percent, or 9.93 points, from the previous trading session. [YONHAP]

Stocks closed lower Thursday as investors sat on the sidelines ahead of the holiday on Friday while keeping a watchful eye on U.S. inflation trends. The local currency gained against the U.S. dollar.

The Kospi shed 9.93 points, or 0.37 percent, to 2,642.36.

Trade volume was moderate at 484 million shares worth 12.5 trillion won ($9.44 billion), with losers outpacing gainers 545 to 341.

Institutions were net sellers by offloading 507.3 billion won, while foreigners scooped up a net 175.1 billion won. Individuals bought a net 310 billion won.

Seoul shares mostly traded in negative territory, tracking overnight losses on Wall Street as the latest U.S. economic indicator suggested that inflation in the world's top economy remains high, providing a fresh clue on the Federal Reserve's policy direction.

"Investors remained cautious over the U.S. personal consumption expenditures price index, along with the local market's closure for March 1 Independence Movement Day," said Han Ji-young, an analyst from Kiwoom Securities.

Han noted that the weak performance of tech shares on Wall Street overnight also weighed down investor sentiment.

In Seoul, Samsung Electronics edged up 0.27 percent to 73,400 won after choppy trading, while SK hynix shed 1.14 percent to 156,000 won. Samsung SDI slid 1.18 percent to 377,000 won.

Pharmaceutical shares closed bearish as well, with Samsung Biologics decreasing 3.37 percent to 774,000 won and Celltrion moving down 5.42 percent to 179,700 won.

Naver decreased 4.41 percent to 195,000 won, and Kakao lost 4.14 percent to 53,300 won.

Carmakers, on the other hand, closed higher, with Hyundai Motor rising 1.01 percent to 250,500 won and Kia gaining 5.78 percent to 124,500 won. Hyundai Mobis climbed 0.21 percent to 242,500 won.

Hanwha Investment & Securities shot up 3.49 percent to 4,450 won following recent strong gains for cryptocurrency. The company holds shares in the operator of the country's top crypto market.

The local currency ended at 1,331.5 won against the greenback, down 2.1 won from the previous session's close.

The Kosdaq lost 0.43 points, or 0.05 percent, to close at 862.96.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds added 2.9 basis points to reach 3.387 percent, and the return on the benchmark 10-year government bonds lost 3.5 basis points to hit 4.264 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]