Seoul stocks open sharply lower on SVB fallout woes

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Seoul stocks open sharply lower on SVB fallout woes

Published: 14 Mar. 2023, 09:43 Updated: 14 Mar. 2023, 10:09

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

Stocks opened sharply lower Tuesday as investors weigh the fallout from the collapse of two U.S. banks and uncertainties over the Federal Reserve's monetary tightening.

The benchmark Kospi shed 36.51 points, or 1.51 percent, to 2,374.09 in the first 15 minutes of trading.

The failures of Silicon Valley Bank (SVB), the largest shutdown of a U.S. bank since the 2008 financial crisis, and the New York-based Signature Bank fanned sell-offs by foreign and institutional investors.

Investors are also bracing for uncertainties about the Fed's pace of monetary tightening in the wake of the banks' collapse.

Some expect the Fed to slow its tightening pace on worries that the collapses may lead to a systemic risk in the financial sector.

Seoul's finance minister said earlier in the day that the authorities will closely monitor the market.

In Seoul, top cap Samsung Electronics retreated 1.17 percent, and chipmaker SK hynix dropped 2.97 percent.

Battery maker LG Energy Solution lost 1.95 percent, and chemical firm LG Chem declined 2.09 percent. Hyundai Motor decreased 1.36 percent.

The local currency was trading at 1,301.45 won against the dollar as of 9:15 a.m., down 0.35 won from the previous session's close.

Yonhap