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Seoul shares open lower on US rate hike woes

Aug. 31, 2022 - 09:39 By Yonhap
An electronic board showing the Korea Composite Stock Price Index (Kospi) at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)

South Korean stocks opened sharply lower Wednesday, tracking a continued drop on Wall Street that stemmed from concerns about the US Federal Reserve's aggressive policy tightening.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 23.83 points, or 0.97 percent, to trade at 2,427.1 points as of 9:15 a.m.

Stocks have been in a slump in the wake of the Fed chairman's reaffirmation in Jackson Hole that the US central bank would continue its fight against four-decade high inflation.

Overnight, the Dow Jones Industrial Average fell 0.96 percent, and the tech-heavy Nasdaq dived 1.12 percent.

Most large caps opened lower in Seoul, led by losses in the big tech and bio sectors.

Market bellwether Samsung Electronics lost 0.68 percent, and leading car battery maker LG Energy Solution shed 1.83 percent.

No. 2 chipmaker SK hynix dropped 0.97 percent, and top chemical firm LG Chem retreated 1.15 percent. Internet portal giant Naver fell 1.68 percent.

Among gainers, giant carmaker Hyundai Motor added 0.51 percent.

The local currency was trading at 1,351.45 won against the US dollar, down 4.75 won from the previous session's close. (Yonhap)