Seoul shares open lower on Fed's hawkish stance

Finance

Seoul shares open lower on Fed's hawkish stance

Published: 15 Dec. 2022, 09:37 Updated: 15 Dec. 2022, 09:55

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

Shares opened lower Thursday tracking falls on Wall Street as the U.S. Federal Reserve signaled that its rate hikes would continue next year.

The benchmark Kospi fell 11.58 points, or 0.48 percent, to 2,387.67 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average fell 0.4 percent to 33,966.35, and the tech-heavy Nasdaq Composite declined 0.8 percent to 11,170.89.

The drops come after the Federal Open Market Committee raised its benchmark rate by 50 basis points to a range of 4.25 percent to 4.5 percent.

The policymakers forecast rates would end next year in a range of 5 percent to 5.25 percent, a higher level than previously indicated.

Fed Chair Jerome Powell said the U.S. central bank has more work to do in raising rates to rein in inflation.

In Seoul, large-cap stocks were mixed across the board.

Samsung Electronics fell 1.2 percent, SK hynix 1.8 percent, Posco Holdings 1.4 percent, and LG Energy Solution 0.4 percent.

Among gainers, Hyundai Motor rose 0.6 percent, Korean Air 0.6 percent, and SK Innovation 0.9 percent.

The local currency was trading at 1,301.30 won against the dollar as of 9:15 a.m., up 5 won from the previous session's close.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]