Korea's stocks open sharply lower on Fed chief's hawkish comments

Finance

Published: 08 Mar. 2023, 09:45 Updated: 08 Mar. 2023, 10:16

Korea's stocks open sharply lower on Fed chief's hawkish comments

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 on renewed fears over further sharp rate hikes after the Fed chief's hawkish comments.

The benchmark Kospi was down 28.76 points, or 1.17 percent, to 2,434.59 in the first 15 minutes of trading.

Federal Reserve Chair Jerome Powell cautioned Tuesday that "The ultimate level of interest rates is likely to be higher than previously anticipated," considering that the latest economic data suggests inflation is continuing.

His speech came as the market generally has expected the Fed to slow down its pace of rate increases.

The Fed raised rates by 25 basis points last month after a 50 basis point increase in December, on top of a series of three-quarter point hikes.

U.S. stocks fell sharply. The major three indices on Wall Street fell over 1 percent overnight.

In Seoul, shares traded lower across the board.

Samsung Electronics declined 0.82 percent, and SK hynix dipped 1.46 percent.

Chemical firm LG Chem fell 2.7 percent, while automaker Hyundai Motor inched up 0.29 percent and tech firm LG Electronics advanced 3.58 percent.

Some financial stocks were trading higher.

Shinhan Financial added 0.82 percent, and Woori Financial gained 0.25 percent.

The local currency was changing hands at 1,317.2 won against the dollar as of 9:15 a.m., up 17.8 won from the previous session's close.

Yonhap