Korea's stocks open lower on interest rate hike jitters

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Korea's stocks open lower on interest rate hike jitters

Published: 07 Mar. 2023, 09:47 Updated: 07 Mar. 2023, 10:10

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

Stocks opened lower Tuesday, trailing behind lackluster trading on Wall Street, as investors brace for Federal Reserve Chair Jerome Powell's testimony this week.

The benchmark Kospi was down 1.9 points, or 0.08 percent, to 2,460.72 points in the first 15 minutes of trading.

Federal Reserve Bank of San Francisco President Mary Daly said Saturday that "there is more work to do" in the Fed's ongoing fight against inflation, suggesting that interest rates could remain at elevated levels for a longer period of time.

Traders will look for clues of the Fed's next policy direction when Powell gives his assessment of the U.S. economy before Congress this week.

In Seoul, shares traded lower across the board.

Samsung Electronics declined 0.65 percent, and chip maker SK hynix dipped 0.45 percent.

Tech shares shed gains from the previous session.

Portal operator Naver was down 1.63 percent, and messenger app operator Kakao fell 3.14 percent.

Among gainers, chemical firm LG Chem added 1.93 percent, and battery maker Posco Chemical jumped 8.53 percent.

The local currency was changing hands at 1,300 won against the dollar, up 3.2 won from the previous session's close.

Yonhap