South Korean Equities Snap Six-Day Winning Streak on Profit-Booking

South Korean shares closed lower on Thursday, breaking a six-day winning streak as investors booked profits.

Investors chose to take profits amid possible renewed tensions between the U.S. and China on the trade front.

On Wednesday, Reuters exclusively reported that the U.S. was considering broad export controls that could restrict software-powered products, including laptops and jet engines, to China. This could be in retaliation for Beijing's recent curbs on rare earth exports.

The Korea Composite Stock Price Index or Kospi fell 38.12 points, or 1.0%, to end at 3,845.56. The Kosdaq also decreased by 7.12 points, or 0.8%, to close at 872.03.

In economic news, the Bank of Korea's Monetary Policy Board on Thursday kept its base rate unchanged at 2.50% for the third time, amid stable inflation and continued recovery in consumption and exports despite global uncertainties.

Economic growth continues to improve, supported by strong outbound shipments of semiconductors, while domestic demand remains steady, the central bank said.

While the domestic currency weakened due to global trade tensions, stock prices have risen on optimism over semiconductor exports, according to the central bank.

In corporate news, LG Electronics (KRX:066570) established a global automotive software firm to join SDVerse, an open market platform for automotive software.

Shares of LG Electronics rose nearly 1% at market close.