(2nd LD) Seoul shares close lower ahead of parliamentary elections, U.S. inflation data

SEOUL, South Korean stocks ended lower Tuesday as investors grew more cautious ahead of parliamentary elections and the release of key U.S. inflation data later this week. The Korean won fell against the U.S. dollar. After starting higher, the benchmark Korea Composite Stock Price Index lost 12.49 points, or 0.46 percent, to close at 2,705.16. Trade volume was moderate at 458.4 million shares worth 9.48 trillion won (US$6.99 billion), with decliners outpacing gainers 489 to 370. Institutions bought stocks worth 124.9 billion won, while foreigners and retail investors unloaded local shares worth 134.2 billion won and 13.5 billion won, respectively. Overnight, major U.S. indexes closed almost flat as investors awaited the March consumer price index (CPI) report, a key measure of inflation, to be released later this week. Investors' eyes are also on the results of South Korea's parliamentary elections set to be held Wednesday. "Investors' preference for risky assets decreased on increasing pressure from U. S. rate cuts getting delayed and ahead of the release of March CPI," Lee Kyoung-min, an analyst at Daishin Securities, said. "Foreign investors, who have purchased a record-high amount of Korean shares recently, also turned to a selling mode, bringing negative impact on the South Korean stock market," he added. Last week, a U.S. monthly jobs report showed that the world's largest economy posted the biggest job growth in almost a year in March, raising bets the Federal Reserve may keep its interest rates elevated for longer. In Seoul, market bellwether Samsung Electronics dipped 1.07 percent to 83,600 won, while No. 2 chipmaker SK hynix climbed 0.94 percent to 182,900 won. Leading battery maker LG Energy Solution rose 0.27 percent to 374,000 won, but its smaller rivals, Samsung SDI and POSCO Future M, dropped 2.14 percent and 0.53 percent to 411,000 won and 280,000 won, respectively. Auto and bio shares lost ground. Top carmaker Hyundai Motor retreated 1.94 percent to 228,000 won, and its smaller affilia te Kia dropped 0.46 percent to 108,000 won. Bio giant Samsung Biologics decreased 1.23 percent to 805,000 won, and Celltrion slid 3.82 percent to 181,300 won. The local currency ended at 1,354.90 won against the greenback, down 1.70 won from the previous session's close. Bond prices, which move inversely to yields, decreased. The yield on three-year Treasurys rose 0.8 basis point to 3.391 percent, and the return on the benchmark five-year government bonds gained 1.3 basis points to 3.436 percent. South Korean stocks markets will be closed on Wednesday due to parliamentary elections. Source: Yonhap News Agency