Kospi closes down on key events overseas

The Kospi lost 29.67 points, or 1.1 percent, to 2,656.17 in the wake of the first rate hike in 17 years by the Bank of Japan and in anticipation of the U.S. Federal Reserve's rate meeting this week.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,656.17 points on Tuesday, down 1.10 percent, or 29.67 points, from the previous trading session. [NEWS1]

Stocks slipped more than 1 percent Tuesday as investors remained cautious ahead of the U.S. Federal Open Market Committee's (FOMC) meeting this week. The local currency fell against the U.S. dollar.

The Kospi lost 29.67 points, or 1.1 percent, to 2,656.17.

Trade volume was moderate at 683.5 million shares worth 10.5 trillion won ($7.88 billion), with losers outpacing gainers 603 to 276.

Foreigners sold a net 238 billion won worth of stocks, while individuals bought a net 908 billion won. Institutions shed a net 701 billion won.

Analysts said investors took to the sidelines as there are a series of key events this week, including the Fed's two-day rate-setting meeting that starts on Tuesday in the U.S.

Investors also digested the Bank of Japan's decision to raise its key rate for the first time in 17 years.

Samsung Electronics closed unchanged at 72,800 won, while SK hynix slid 2.5 percent to 160,200 won.

Battery makers traded mixed, with LG Energy Solution losing 1.1 percent to 40,300 won while Samsung SDI rose 1.58 percent to 451,000 won.

State-run energy firms also finished bearish. Kepco plunged 7.82 percent to 22,400 won, and Korea Gas lost 3.7 percent to 27,350 won.

Hyundai Motor decreased 2.06 percent to 237,500 won, and Kia lost 7.11 percent to 118,900 won.

Hyundai Mobis moved down 5.41 percent to 253,500 won.

Hanwha Aerospace was among the winners, advancing 3.98 percent to 190,500 won.

Samsung Biologics fell 1.28 percent to 848,000 won and Celltrion gained 1.04 percent to 184,400 won.

For financial shares, KB Financial lost 2.55 percent to 72,500 won, while Shinhan Financial retreated 2.25 percent to 47,850 won. Woori Financial slipped 1.68 percent to 14,660 won.

The local currency ended at 1,339.8 won against the greenback, up 6.1 won from the previous session's close.

The Kosdaq lost 2.57 points, or 0.29 percent, to close at 891.91.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 3.2 basis points to 3.379 percent, and the return on the benchmark 10-year government bonds climbed 1.6 basis points to 4.330 percent.

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