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Seoul's stocks open over 1% lower after Fed's sharp rate hike

Sept. 22, 2022 - 09:52 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 Thursday. (Yonhap)

South Korean stocks opened more than 1 percent lower on Thursday as worries over a global recession mounted after the US Federal Reserve delivered another sharp rate hike to tame runaway inflation.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 26.75 points, or 1.14 percent, to 2,320.46 as of 9:15 a.m.

Overnight, the Fed raised its benchmark federal funds rate by 0.75 percentage point for a third consecutive time, and its chair Jerome Powell voiced strong resolution to continue to push for aggressive monetary tightening "until the job is done."

The hawkish monetary policy stance sent US stocks lower. The Dow Jones Industrial Average plunged 1.7 percent. The tech-heavy Nasdaq also dipped 1.79 percent.

In Seoul, most large-cap shares got off to a weak start.

Market bellwether Samsung Electronics dipped 1.45 percent, while rival SK hynix slid 1.59 percent.

Top carmaker Hyundai Motor lost 0.76 percent, and bio firm Celltrion plunged 2.07 percent.

The local currency was changing hands at 1,404.7 won against the greenback as of 9:15 a.m., down 10.5 won from the previous session's close. (Yonhap)