Seoul shares extended losses late Friday morning after robust job data dampened hopes for an early interest rate cut by the Federal Reserve this year.
The benchmark Korea Composite Stock Price Index had fallen 3.66 points, or 0.14 percent, to 2,583.36 as of 11:30 a.m.
Overnight, U.S. stocks ended mixed. The Dow Jones Industrial Average inched up 0.03 percent to 37,440.34, but the tech-heavy Nasdaq declined 0.6 percent to 14,510.30.
Data showed U.S. companies hired more in December and jobless claims were lower than expected. Earlier this week, the Fed’s minutes from its December meeting indicated rates could remain at high levels for some time and there will be possible rate cuts later this year.
Institutions and foreigners sold a combined 308 billion won (US$235 million) worth of stocks, offsetting individuals’ stock purchases valued at 299 billion won.
Tech and auto stocks were lead decliners.
Market bellwether Samsung Electronics Co. fell 0.2 percent, top carmaker Hyundai Motor Co. declined 0.6 perc
ent, state-run Korea Gas Corp. dropped 0.8 percent, and the country’s sole aircraft manufacturer Korea Aerospace Industries Co. shed 0.4 percent.
Among gainers, leading chemical firm LG Chem, Ltd. rose 1.6 percent on an anti-obesity drug deal with U.S. pharmaceutical firm Rhythm Pharmaceuticals, Inc., leading shipping firm HMM climbed 0.7 percent, and Hanjin KAL Corp., the parent firm of national flag carrier Korean Air Co., was up 5.7 percent.
The local currency was trading at 1,311.50 won against the U.S. dollar, down 1.50 won from the previous session’s close.
Source: Yonhap News Agency