Kospi drops 1.67% ahead of U.S. inflation news

Shares closed sharply lower Wednesday as investors waited for major events, including this week's U.S. inflation data. The won fell in value against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,677.30 points on Wednesday, down 1.67 percent, or 45.55 points, from the previous trading session. [NEWS1]

Shares closed sharply lower Wednesday as investors wait for major events, including this week's U.S. inflation data. The won fell in value against the dollar.

The Kospi plunged 45.55 points, or 1.67 percent, to close at 2,722.85. The Kosdaq fell 12.56 points, or 1.48 percent, to close at 838.45.

Trade volume was moderate at 431 million shares worth 12.7 trillion won ($9.36 billion), with losers far outpacing gainers 673 to 220.

Foreigners dumped a net 1 trillion won, while individuals scooped up a net 1.26 trillion won. Institutions offloaded a net 266 billion won.

The United States is set to release April's core Personal Consumption Expenditures (PCE) price index on Friday (U.S. time).

"While there is a lack of events that can impact the direction of the financial market through Thursday, the result of the April PCE report from the United States is important," Han Ji-young, an analyst at Kiwoom Securities, said.

Shares lost ground across the board, with Samsung Electronics falling 3.09 percent to 75,200 won and LG Energy Solution losing 5 percent to 342,000 won. SK hynix remained unchanged from the previous session at 202,500 won.

Posco Future M dropped 4.49 percent to 255,000 won.

Chemical shares finished bearish as well, with SK Innovation falling 5.24 percent to 370,500 won and S-Oil losing 0.29 percent to 68,400 won.

Car and auto parts, as well as pharmaceutical shares, dropped too.

Hyundai Motor shed 1.51 percent to 261,000 won, and Kia slipped 0.33 percent to 122,000 won. Hyundai Mobis decreased 0.68 percent to 217,500 won.

Samsung Biologics moved down 2.42 percent to 727,000 won, and Celltrion fell 1.11 percent to 178,900 won.

Naver fell 1.18 percent to 175,300 won, and Kakao slipped 2.99 percent to 43,750 won.

The local currency ended at 1,365 won against the greenback, up 6.5 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 3.1 basis points to 3.427 percent, and the return on the benchmark U.S. 10-year government bonds gained 8.7 basis points to 4.553 percent.

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