SEOUL-- South Korean stocks closed lower Friday amid concerns about faster-than-expected inflation in the United States and the spreading new coronavirus pandemic at home. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.31 points, or 0.28 percent, to close at 3,276.91 points.
Trading volume was moderate at about 1.1 billion shares worth some 14.6 trillion won (US$12.8 billion), with gainers outnumbering losers 489 to 354.
Foreigners sold a net 89 billion won, while retail investors bought 694 billion won. Institutions offloaded a net 573 billion won.
Stocks got off to a weak start, taking a cue from overnight tech losses on Wall Street.
Federal Reserve Chair Jerome Powell said the U.S. central bank would support an accommodative stance, as the current inflation is expected to wane. But the comment fell short of reducing the tapering jitters in the financial markets.
Overnight, the Nasdaq Composite slumped 0.7 percent, and the S&P 500 retreated 0.33 percent, while the Dow Jones Industrial Average edged up 0.15 percent.
Stocks deepened losses in the late morning as investor sentiment for risk weakened on spiking new COVID-19 cases.
The health authorities warned that new infections are highly likely to increase during the summer vacation season and add uncertainties in the ailing South Korean economy.
"Investors' concerns about the spreading COVID-19 cases and rising inflation pressure pulled down stock prices in Europe and the U.S., affecting the local markets as well," Mirae Asset Securities analyst Seo Sang-young said.
In Seoul, market bellwether Samsung Electronics lost 0.99 percent to 79,800 won, and No. 2 chipmaker SK hynix shed 1.62 percent to 121,500 won.
Internet portal operator Naver moved down 0.45 percent to 447,000 won, and giant pharmaceutical firm Samsung Biologics jumped 2.86 percent to 899,000 won.
Top automaker Hyundai Motor declined 0.65 percent to 230,000 won, and leading chemical firm LG Chem advanced 1.22 percent to 828,000 won.
The local currency closed at 1,139.5 won against the U.S. dollar, up 2 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 4.6 basis points to 1.451 percent, and the return on the benchmark five-year government bond fell 3.5 basis points to 1.718 percent.
Source: Yonhap News Agency