South Korean Shares Close Lower as Powell Hints at September Rate Cut; Hyundai, Kia Lose 1%

South Korean shares closed lower for a second session on Monday after US Federal Reserve Chairman Jerome Powell hinted that the central bank might cut its benchmark interest rate in September.

The Korea Composite Stock Price Index, or Kospi, was down 3.68 points, or 0.14%, to close at 2,698.01. The Kosdaq fell 6.47 points, or 0.84%, to 766.79.

In other economic developments, foreign currency deposits in South Korea continued their upward trajectory for the second month in July. According to data released last week by the Bank of Korea, residents' deposits increased by $3.87 billion from the previous month, reaching $4.44 billion.

The total foreign currency holdings of residents -- which include local citizens, long-term foreign residents, and foreign companies -- amounted to $78.04 billion in US dollar deposits and $10.10 billion in Japanese yen deposits. The Bank of Korea's data excludes interbank deposits.

On the corporate front, Hyundai Motor (KRX:005380) and Kia (KRX:000270) introduced three new temperature control technologies aimed at boosting passenger comfort and energy efficiency.

Shares of Hyundai Motor and Kia fell over 1% at market close on Monday.