South Korean Slide on US Fed's Key Rate Freeze; HD Hyundai Sheds 4% Despite New Contract Win by Subsidiary

South Korean stocks closed lower on Thursday after the US Federal Reserve decided to keep its key interest rate frozen in the range of 5.25% to 5.50% for the sixth straight time.

The Korea Composite Stock Price Index or Kospi was down 8.41 points, or 0.31%, to finish at 2,683.65. The Kosdaq fell by 1.45 points, or 0.17%, to 867.48.

In economic news, consumer inflation in South Korea eased in April for the first time in three months, data from Statistics Korea revealed on Thursday.

Consumer inflation rose 2.9% in April from the same month last year, easing from a rise of 3.1% in March. A Reuters survey of economists estimated consumer inflation in the country to increase 3% last month.

On a month-over-month basis, South Korea's consumer price index remained unchanged, slowing from a 0.1% rise in March. Economists polled by Reuters had expected a median 0.15% increase.

Core CPI, which excludes food and energy prices, increased 0.2% in April from March and rose 2.3% from the same month of the previous year, Statistics Korea said.

In corporate news, HD Hyundai 267250 subsidiary HD Hyundai Oilbank secured a three-year deal worth 857.8 billion won to supply sulfur diesel to the Guam Power Authority.

The company is set to deliver 4.5 million barrels to 7.2 million barrels of ultra-low sulfur diesel to the power authority by 2027, which will be transported via the company's Korean trading entity.

Shares of HD Hyundai fell more than 4% at market close.