Stocks snap 5-day winning streak on rate concerns

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,450.47 points on Monday, down 33.55 points, or 1.35 percent, from the previous trading day. [NEWS1]

Stocks snapped their five-day winning streak Monday, weighed down by losses in major tech shares ahead of the U.S. Federal Reserve's rate-decision meeting and export data from Asia's fourth-largest economy. The won rose to the highest in nine months against the dollar.

The Kospi retreated 33.55 points, or 1.35 percent, to close at 2,450.47 points.

Trading volume was moderate at about 460 million shares worth some 8.7 trillion won ($7.1 billion), with losers outnumbering gainers 644 to 233.

Institutions sold a net 412 billion won, leading the stock losses. Foreigners bought 17 billion won, and retail investors scooped up 460 billion won.

The Kospi got off to a weak start and remained in the red throughout the session.

Investors took a breather as they have to digest key events this week, such as the U.S. Federal Reserve's policy meeting, amid expectations of its milder policy tightening.

"Investors are bracing themselves for many crucial events, like the monetary meeting by the FOMC," said Kiwoom Securities analyst Han Ji-young.

In Seoul, Samsung Electronics lost 2.01 percent to 63,300 won, and SK hynix fell 0.87 percent to 90,700 won.

Portal operator Naver dropped 2.13 percent to 207,000 won, and Kakao decreased 1.85 percent to 63,500 won.

Auto maker Hyundai Motor declined 2.24 percent to 170,000 won, and bio heavyweight Samsung Biologics slid 0.74 percent to 803,000 won.

Among gainers, battery makers such as LG Energy Solution added 0.79 percent to 510,000 won.

The local currency closed at 1,227.4 won against the dollar, down 3.9 won from the previous session's close, the strongest since April 15, 2022, when the corresponding figure was 1,229.6 won.

The Kosdaq lost 2.63 points, or 0.35 percent, to close at 738.62 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 3.3 basis points to 3.271 percent, and the yield on the benchmark 10-year government bonds gained 1.5 basis points to 3.510 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]