South Korean shares snapped a six-day winning streak on Friday to close lower after investors took the opportunity of the recent rally to book profits.
Starting the day on a strong chip rally, shares lost momentum in the afternoon after news broke of the cancellation of the talks scheduled for Friday between the US and Iran in Switzerland to implement a peace agreement. The talks were expected to take place in the Swiss village of Obbürgen, two days after a memorandum of understanding (MoU) established a 60-day negotiation window for a long-term agreement on Iran's nuclear program and the resumption of oil shipments via the Strait of Hormuz.
The benchmark Korea Composite Stock Price Index, or Kospi, fell by 0.13%, or 11.42 points, to close at 9,052.42. The Kosdaq also decreased by 3.4%, or 34.34 points, to end at 966.59.
In economic news, producer prices in South Korea increased 8.5% in May from a year earlier, accelerating from 7.2% in April and marking the strongest annual increase since July 2022, according to preliminary data from the Bank of Korea on Friday.
The year-on-year gains were driven by higher costs across all categories. On a month-on-month basis, producer prices increased 0.8% in May, according to the data.
On the corporate front, Celltrion (KRX:068270) said approval for Part 1 of its European Phase 3 clinical trial application for Remsima (CT-P13 SC) in pediatric patients with Crohn's Disease has lapsed, according to a Friday filing with the Korea Exchange.
Shares of the company fell nearly 3% at market close.
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