SEOUL-- South Korean stocks fell more than 1 percent on Thursday, as minutes from the U.S. Federal Reserve's March meeting suggested a stronger-than-expected hawkish stance on rate hikes. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 39.17 points, or 1.43 percent, to close at 2,695.86 points.
Trading volume was moderate at around 1.21 billion shares worth some 9.8 trillion won (US$8 billion), with losers far outnumbering gainers 703 to 189.
Foreigners and institutions sold stocks worth 772.6 billion won and 521 billion won, respectively, while retail investors alone picked up shares worth 1.28 trillion won.
The market opened lower, tracking overnight losses on Wall Street, after the Federal Reserve's minutes of its latest meeting showed that the officials are considering raising rates by a half percentage point, rather than the usual quarter point, and they "generally" agreed on a massive balance sheet reduction as soon as next month.
"The local stock market moved in line with major markets due to the Fed's monetary tightening," Kiwoom Securities analyst Han Ji-young said, adding that overnight losses of major technology shares on Wall Street pressured blue chips here.
Uncertainties surrounding the Ukraine crisis continued, as the European Union on Tuesday discussed additional sanctions against Russia over its invasion of Ukraine.
In Seoul, most large-cap shares finished lower, with tech and financial stocks leading the overall market falls due to profit-taking.
Market bellwether Samsung Electronics fell 0.73 percent to a 52-week low of 68,000 won despite its earnings guidance that showed its best first-quarter earnings in four years on the back of solid chip and mobile demand.
Major battery maker LG Energy Solution lost 1.8 percent to 436,500 won, and Samsung SDI decreased 2.51 percent to 583,000 won. LG Chem went down 2.26 percent to 518,000 won.
Internet banking firm Kakao Bank dropped 4.45 percent to 46,200 won, and Kakao Pay, fintech arm of internet giant Kakao, dropped 3.26 percent to 133,500 won.
In contrast, major chipmaker SK hynix gained 0.44 percent to 113,500 won.
The local currency closed at 1,219.5 won against the U.S. dollar, down 1.2 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 3.6 basis points to 2.905 percent, and the return on the benchmark five-year government bond shed 5.1 basis points to 3.046 percent.
Source: Yonhap News Agency