Seoul shares open lower on recession woes

Home > Business > Finance

Seoul shares open lower on recession woes

Published: 16 Dec. 2022, 09:37 Updated: 16 Dec. 2022, 10:08

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

Shares opened sharply lower Friday, tracking overnight losses on Wall Street, as the U.S. Federal Reserve's continued push for aggressive monetary tightening deepened concerns about a global economic recession.

The benchmark Kospi fell 20.39 points, or 0.86 percent, to 2,340.58 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average lost 2.25 percent, and the tech-heavy Nasdaq Composite sank 3.23 percent, as data showed that retail sales fell more than expected in November, stoking recession fears.

On Wednesday, Chair Jerome Powell said the Fed has "more work to do" to rein in inflation. During the latest rate-setting meeting, it raised its benchmark rate by 50 basis points, and it is forecast to raise the interest rate to a higher-than-expected level next year.

In Seoul, most shares lost ground.

Samsung Electronics fell 1.01 percent, and chipmaker SK hynix sank 2.24 percent.

LG Energy Solution shed 1.13 percent, and Samsung SDI declined 1.05 percent. LG Chem also lost 1.09 percent.

Bio shares also went down, with Samsung Biologics decreasing 1.09 percent and Celltrion skidding 0.56 percent.

Hyundai Motor retreated 0.31 percent, and its affiliate Kia fell 0.16 percent.

The local currency was trading at 1,313.65 won against the dollar as of 9:15 a.m., up 10.55 won from the previous session's close.

BY CHO JUNG-WOO, YONHAP [[email protected]]