Kospi closes down with U.S. inflation data forthcoming

The Kospi lost 9.29 points, or 0.34 percent, to close at 2,745.82 on Thursday as investors played it safe on discouraging remarks by an official from the U.S. Federal Reserve.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,745.82 points on Thursday, down 0.34 percent, or 9.29 points, from the previous trading session. [YONHAP]

Stocks ended slightly lower on Thursday ahead of the release of a key U.S. inflation report due later this week and remarks by a Fed official that more data is necessary to cut rates. The local currency gained against the U.S. dollar.

The Kospi lost 9.29 points, or 0.34 percent, to close at 2,745.82.

Trade volume was moderate at 412.5 million shares worth 11.7 trillion won ($8.69 billion), with losers beating winners 561 to 290.

Institutions remained net sellers, dumping a net 238.9 billion won worth of local shares, while foreign investors purchased a net 159.2 billion won and individuals bought 58.9 billion won.

"The Kospi has been on an upward trajectory throughout March, and it seems to be experiencing minor corrections recently," said Jung In-ji, an analyst from Yuanta Securities Korea.

Investors digested remarks by Fed Gov. Christopher Waller overnight implying that any rate cut by the Fed in the near future is unlikely, and also await core personal consumption expenditures price index data from the U.S., the Fed's preferred gauge of inflation due this week.

Many large caps ended in negative territory across the board.

SK hynix fell 1.66 percent to 178,200 won and LG Energy Solution dropped 1.83 percent to 401,500 won.

Naver retreated 1.16 percent to 187,100 won and Netmarble skidded 2.92 percent to 63,100 won.

Hanwha Aerospace sank 6.95 percent to 207,500 won and SK biopharm declined 2.32 percent to 92,500 won.

But Samsung Electronics rose 1.25 percent to 80,800 won and Hanmi Semiconductor shot up 17.13 percent to 134,000 won on media reports that it is in talks with U.S. chipmaker Micron over a new supply deal.

The local currency closed at 1,346.2 won against the greenback, down 2.5 won from the previous session's close that hit a four-month low.

The Kosdaq lost 1.20 points, or 0.13 percent, to close at 910.05.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.3 basis points to 3.292 percent and the return on the benchmark U.S. 10-year government bonds lost 4.4 basis points to 4.190 percent.

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