Kospi ends flat on eve of U.S. inflation data release

Shares ended almost flat Friday after a three-day rise ahead of key U.S. inflation data due this week. The won fell in value against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,636.52 points on Friday, up 0.04 percent, or 1.08 points, from the previous trading session. [YONHAP]

Shares ended almost flat Friday after a three-day rise ahead of key U.S. inflation data due this week. The won fell in value against the dollar.

The Kospi rose 1.08 points, or 0.04 percent, to close at 2,636.52. The main index has fallen 1.9 percent this week.

Trade volume was heavy at 594.78 million shares worth 15.45 trillion won ($11.1 billion), with gainers far outpacing losers 533 to 332. Institutions and individuals bought a combined 1.35 trillion won in stocks, offsetting foreigners' stock-selling valued at 1.34 trillion won.

Overnight, the Dow Jones fell 0.86 percent to 38,111.48 points, and the tech-heavy Nasdaq declined 1.08 percent to 16,737.08.

Ahead of the April personal consumption expenditure (PCE) price index release on Friday (U.S. time), data showed the U.S. economy grew at a slower-than-expected pace, which bolstered the case for the U.S. Federal Reserve to start cutting rates this year.

All eyes are on the April PCE data to get a cue on the U.S. central bank's future policy direction, analysts said.

In Seoul, energy and airline stocks rose.

LG Energy Solution rose 0.9 percent to 331,000 won, Korea Gas Corporation climbed 4.9 percent to 29,800 won, Korean Air gained 2.2 percent to 20,850 won and SK jumped 11.5 percent to 176,200 won.

Among decliners, SK hynix Inc. fell 3.3 percent to 189,200 won, Hyundai Motor declined 1.6 percent to 253,000 won and Korea Aerospace Industries shed 3.9 percent to 51,800 won.

The local currency ended at 1,384.50 won against the greenback, up 5.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 1.2 basis points to 3.451 percent, and the return on the benchmark U.S. 10-year government bonds fell 6.3 basis points to 4.552 percent.

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