Korean shares open lower ahead of Fed's rate-setting meeting

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Korean shares open lower ahead of Fed's rate-setting meeting

Published: 12 Dec. 2022, 09:29 Updated: 12 Dec. 2022, 10:11

Electronic display boards at Hana Bank in central Seoul show stock and foreign exchange markets on Monday morning. [YONHAP]

Stocks opened lower Monday as investors were cautious ahead of the U.S. Federal Reserve's rate-setting meeting this week.

The Kospi slid 10.54 points, or 0.44 percent, to 2,378.50 in the first 15 minutes of trading.

Several major economic developments from the United States are due this week, as the Fed is to hold a two-day rate-setting meeting starting Tuesday and is likely to deliver a 50-basis point hike.

The Fed has raised the interest rate by 75 basis points four times in a move to curb high inflation.

The U.S. consumer price index will also come out Tuesday.

On Friday, U.S. shares finished lower. The Dow Jones Industrial Average lost 0.9 percent, and the tech-heavy Nasdaq Composite fell 0.7 percent.

In Seoul, major stocks fell across the board, with tech shares under heavy downward pressure.

Samsung Electronics sank 0.99 percent, and SK hynix skidded 1.23 percent. LG Energy Solution lost 0.19 percent, and Samsung SDI went down 0.16 percent.

Bio shares also lost ground, with Samsung Biologics decreasing 0.73 percent and Celltrion falling 0.83 percent.

LG Chem advanced 0.8 percent, and Kakao added 0.86 percent.

Hyundai Motor and its affiliate Kia traded flat.

The local currency was trading at 1,308.15 won against the dollar as of 9:15 a.m., up 6.85 won from the previous session's close.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]