Seoul shares closed nearly flat Monday after an eight-session losing streak, as cooler-than-expected US inflation data buoyed hopes for rate cuts by the Federal Reserve this year. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index edged up 0.94 points, or 0.04 percent, to close at 2,525.99.

Trade volume was moderate at 788.29 million shares worth 8.05 trillion won ($6.09 billion), with losers outnumbering gainers 575 to 304.

Institutions bought a net 89.73 billion won worth of stocks, offsetting foreigners and individuals' stock selling valued at 96.89 billion won.

The US inflation data that came out Friday gave a boost to bets on an early rate cut in the first quarter, analysts said.

"Despite the buoyed hopes for rate cuts (this year), losses in battery stocks kept Kospi from rising further in the domestic market," Lee Jae-won, an analyst at Mirae Asset Securities Co., said.

In Seoul, battery and refiner stocks led declines.

Leading car battery maker LG Energy Solution Ltd. fell 3.3 percent to 399,500 won, while another car battery firm Samsung SDI Co. declined 2 percent to 400,000 won, battery materials maker POSCO Future M dropped 2.6 percent to 306,000 won, and leading refiner SK Innovation Co. shed 1 percent to 123,400 won.

Among the gainers, market bellwether Samsung Electronics Co. rose 1.1 percent to 73,900 won, top carmaker Hyundai Motor Co. rose 0.8 percent to 187,500 won, and the country's national flag carrier Korean Air Co. climbed 0.4 percent to 22,950 won.

The local currency closed at 1,320.20 won against the greenback, down 6.7 won from the previous session's close. (Yonhap)