South Korean stocks snapped a two-day gaining streak to close lower Friday, as investor sentiment was hurt by lackluster earnings and dim guidance from major US tech companies, and uncertainties over the Federal Reserve's monetary policy, analysts said. The local currency fell against the US dollar.

The benchmark Korea Composite Stock Price Index slid 20.38 points, or 0.89 percent, to 2,268.40. Trading volume was moderate at 420.3 million shares worth 8.15 trillion won ($5.73 billion) with decliners outnumbering gainers 504 to 349.

Foreigners and individual investors were net sellers of local equities, dumping 192 billion won and 67.7 billion won, respectively. Institutions bought a net 251.7 billion won.

"The lower-than-expected rate hikes in Canada and Australia this month, and comments from US political circles calling for a slowdown in rate increases, reignited hopes for the Fed's easing of monetary tightening," Park Hee-chan, an analyst at Mirae Asset Securities Co., said.

"Yet chances are slim that the Fed will deliver a message that lives up to market expectations at next week's meeting, given the persisting inflation and a rebound in US GDP," Park said.

While the market has priced in another 0.75 percentage-point interest rate hike, investors are hoping the Fed will signal a possible slowdown of interest rate increases at the end of its two-day policy meeting starting Tuesday.

The US economy posted growth for the first time this year in the third quarter, but a slowdown in private spending added to economic woes amid decades-high inflation.

US stocks ended mixed Thursday amid conflicting economic data and earnings reports that included downbeat forecasts by big tech companies, including Meta Platforms, Facebook's parent company.

In Seoul, tech heavyweights drove down the KOSPI. Samsung Electronics dipped 3.7 percent to 57,300 won, with top battery maker LG Energy Solution retreating 1.5 percent to 532,000 won.

Chip giant SK hynix tumbled 7.3 percent to 83,400 won, extending its losing streak for a second straight day, after reporting a 60 percent profit decline in the third quarter.

Autos gained. Industry leader Hyundai Motor rose 1.23 percent to 164,000 won and its auto parts-making affiliate Hyundai Mobis surged 7.35 percent to 219,000 won thanks to solid quarterly earnings.

The local currency ended at 1,421.50 won against the US dollar, down 4.50 won from Thursday's close. (Yonhap)