South Korean stocks closed lower for the second consecutive session Tuesday as investors remained cautious ahead of key global events, including a policy outlook on the US Federal Reserve's potential rate cuts. The Korean won lost ground against the US dollar.
The benchmark Korea Composite Stock Price Index lost 25.72 points, or 0.81 percent, to close at 3,151.56.
Trade volume was light at 281.47 million shares worth 8.54 trillion won ($6.14 billion), with decliners sharply beating gainers 610 to 270.
Foreigners sold a net 453.5 billion won worth of local shares, while individual and institutional investors purchased a net 88.7 billion won and 252.9 billion won, respectively.
The index had opened in negative territory and traded within a narrow range during the morning session, but extended losses in the afternoon on heavy foreign selling.
Investors remained cautious as attention turned to the Fed's annual symposium later this week, where Fed Chair Jerome Powell is expected to speak on the central bank's policy direction.
Also in focus is the upcoming summit among US President Donald Trump, Russian President Vladimir Putin and Ukraine President Volodymyr Zelenskyy, which investors hope may lead to progress toward ending the prolonged Russia-Ukraine war.
Lee Kyung-min, an analyst at Daishin Securities, noted that there is heightened global caution ahead of the Jackson Hole meeting, along with growing interest in the potential outcomes of meetings related to the Russia-Ukraine conflict.
"With both issues unlikely to produce meaningful results in the short term, and with the absence of other major macroeconomic developments, markets are likely to remain in a wait-and-see mode," he said.
In Seoul, market heavyweights closed mixed.
Among tech shares, chip giant Samsung Electronics remained unchanged at 70,000 won, while its rival SK hynix retreated 1.68 percent to 263,000 won.
Leading battery maker LG Energy Solution went up 0.26 percent to close at 384,000 won.
Bio shares were also mixed.
Major pharmaceutical firm Samsung Biologics declined 0.39 percent to 1,024,000 won, while Celltrion remained the same at 172,900 won.
Defense giant Hanwha Aerospace dropped 6.87 percent to close at 827,000 won.
The local currency was quoted at 1,390.7 won against the greenback at 3:30 p.m., down 5.7 won from the previous session. (Yonhap)
