Seoul: South Korean stocks closed slightly higher Wednesday as investors searched for momentum ahead of U.S. corporate earnings and the Federal Reserve's rate decision. The local currency fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose 7.8 points, or 0.25 percent, to close at 3,187.16.
Trade volume was slim at 279.6 million shares worth 8.7 trillion won (US$6.27 billion), with losers outnumbering gainers 520 to 336. Foreign investors sold a net 203 billion won, while individual investors bought a net 60.7 billion won. Institutional investors sold a net 27.7 billion won.
Analysts indicate that investors remained cautious as they awaited the second-quarter earnings of Nvidia, which are expected to provide insight into the global artificial intelligence industry's direction. There was also division among investors regarding the outcome of the U.S. central bank's meeting next month.
"Amid the overall lack of momentum, investors are digesting existing issues, leading to fluctuations across different sectors," said Lee Kyoung-min, an analyst at Daishin Securities.
Top market cap Samsung Electronics rose 0.43 percent to 70,600 won, while No. 2 chipmaker SK hynix fell 0.57 percent to 260,000 won. Chemical shares closed lower, with LG Chem moving down 1.04 percent to 286,500 won and SK Innovation sliding 1.24 percent to 103,600 won.
Hanwha Ocean increased 2.88 percent to 110,900 won, and HD Hyundai Heavy Industries surged 11.32 percent to 521,000 won following reports that the companies were shortlisted as potential participants in a Canadian submarine project.
Naver, the country's leading portal operator, saw its shares fall 1.36 percent to 218,000 won, while its smaller rival Kakao decreased 1.38 percent to 64,100 won.
The local currency was quoted at 1,396.3 won against the U.S. dollar at 3:30 p.m., down 0.5 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys decreased by 2 basis points to 2.402 percent, and the return on the benchmark five-year government bonds went down 2.7 basis points to 2.569 percent.