Seoul shares end lower as Fed rate-cut hopes wane
The benchmark Korea Composite Stock Price Index fell 28.9 points, or 0.9 percent, to finish at 3,186.38.
Trade volume was moderate at 525.37 million shares worth 11.09 trillion won ($8 billion). Decliners outnumbered gainers 704 to 189.
Institutions sold a net 552.8 billion won worth of stocks, offsetting net purchases by foreigners and individuals of 26.79 billion won and 429.99 billion won, respectively.
US inflation rose 2.7 percent in June, below market expectations, even as companies began passing some tariff-related costs on to consumers.
In addition to the weaker-than-expected inflation data, President Donald Trump's latest tariff threats also remained a concern for investors, analysts said.
"But Nvidia's planned resumption of H20 AI chip sales to China boosted demand for chip stocks, helping limit Kospi losses," said Hwang Joon-ho, an analyst at Sangsangin Investment & Securities Co.
In Seoul, large-cap stocks were mixed.
Market bellwether Samsung Electronics rose 1.57 percent to 64,700 won, but chip giant SK hynix fell 0.84 percent to 296,000 won.
Defense industry firm Hanwha Aerospace climbed 0.71 percent to 854,000 won, and leading shipbuilder HD Hyundai Heavy Industries gained 1.77 percent to 401,500 won.
Among other decliners, top carmaker Hyundai Motor dropped 1.66 percent to 207,500 won and leading battery maker LG Energy Solution declined 1.74 percent to 311,000 won.
The local currency closed at 1,385.70 won against the greenback at 3:30 p.m., down 5.5 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.4 basis point to 2.459 percent, and the return on the benchmark five-year government bonds declined 0.2 basis point to 2.642 percent. (Yonhap)
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