South Korean stocks closed lower Friday as uncertainties over further rate hikes emerged after data showing eased U.S. inflation was released. The local currency lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 10.3 points, or 0.4 percent, to 2,591.26. Trading volume was moderate at 664.8 million shares worth 10.3 trillion won (US$7.78 billion), with winners outnumbering losers 562 to 324.

The KOSPI started higher on eased U.S. inflation data for July, which would help the Fed put an end to its hawkish stance.

But later, hope was dampened as San Francisco Fed President Mary Daly said the Fed has “more work to do” to reach its inflation goal.

In Seoul, foreign investors dumped a net 191.2 billion won worth of local shares, while institutions scooped up a net 184.6 billion won.

“America’s July consumer prices rose at a lower than expected clip, and core inflation slowed down, but they are still higher than the target,” Choi Yu-joon, an analyst from Shinhan Investment, said. “Big caps were weak, while mid- and small-sized shares went up.”

Market heavyweights led the decline, as Samsung Electronics, the top market cap, dropped 0.74 percent to 67,500 won and No. 2 LG Energy Solution decreased 1.62 percent to 547,000 won. SK hynix, the third-biggest stock on KOSPI, fell 2.7 percent to 115,300 won.

Tech shares were in negative territory, with top online portal operator Naver sliding 1.33 percent to 222,000 won while its rival Kakao dropped 1.9 percent to 51,600 won.

Pharmaceutical shares were also among the losers, with Samsung Biologics receding 0.12 percent to 801,000 won and SK Bioscience falling 3.85 percent to 82,500 won.

But financial shares finished higher as Hana Financial Group climbed 0.79 percent to 38,200 won and KB Financial Group gained 0.39 percent to 51,600 won.

Following China’s announcement to lift a ban on group tours to South Korea, top hotel operator Hotel Shilla jumped 2.76 percent to 89,200 won and Hyundai Department Store rose 2.15 percent to 66,600 won.

The Korean won ended at 1,324.9 won against the U.S. dollar, down 8.9 won from the previous session’s close.

Source: Yonhap News Agency