Seoul shares open sharply lower on rate hike woes

Finance

Published: 22 Feb. 2023, 09:53 Updated: 22 Feb. 2023, 10:26

Seoul shares open sharply lower on rate hike woes

A screen in Hana Bank's trading room in central Seoul shows stock and foreign exchange markets open on Wednesday. [NEWS1]

Stocks opened sharply lower Wednesday, tracking a Wall Street plunge overnight, on worries over higher borrowing rates ahead of the release of the Federal Reserve's latest minutes.

The benchmark Kospi shed 34.26 points, or 1.39 percent, to 2,424.70 as of 9:15 a.m.

Wall Street dropped overnight as market sentiment was weighed down by fears about higher rates for a longer period of time. Investors are concerned that the Fed will continue to raise rates to tackle persistently high inflation.

The Dow Jones Industrial Average dropped 2.06 percent, and the tech-heavy Nasdaq Composite retreated 2.5 percent, in their worst performing day since Dec. 15. The S&P 500 slid 2 percent.

On Wednesday, the Fed is set to release its latest minutes, which could give out clues about the U.S. monetary tightening policy down the road.

In Seoul, big-cap stocks opened lower across the board.

Samsung Electronics fell 1.13 percent, and chip maker SK hynix lost 2.52 percent.

Battery maker LG Energy Solution declined 2.69 percent and LG Chem shed 2.47 percent. Samsung Biologics lost 1.12 percent, and Celltrion fell 2.2 percent.

Automaker Hyundai Motor went down 1.01 percent, and its affiliate Kia shed 1.31 percent.

The local currency was trading at 1,305 won against the dollar as of 9:15 a.m., up 9.1 won from the previous session's close.

Yonhap