South Korean stocks closed lower on Wednesday, with the Korea Composite Stock Price Index finishing 0.67 percent lower. Foreign selling was the main factor behind the decline, as investors were affected by strong US economic data that supported the Federal Reserve’s interest rate hikes. This data raised concerns about the Fed tightening its monetary policy further, negatively impacting the South Korean stock market. The US dollar also gained against the local currency.
The decline was led by chemical and steel blue-chips, with LG Chem and Posco Holdings experiencing significant drops. However, tech heavyweight Samsung Electronics and chipmaker SK hynix saw some gains.
In terms of investor activity, foreigners sold a net 399.1 billion won worth of local equities, while individual investors bought a net 301.6 billion won. Institutions also bought a net 56.2 billion won worth of equities.
Among the financial sector, major banking firm KB Financial and its rival Hana Financial closed in positive territory.
The local currency, the Korean won, ended at 1,307.30 won against the US dollar, down 7.0 won from the previous day’s close.
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