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Seoul shares open higher on U.S. gains amid rate hike worries

Published: 08 May. 2023, 09:45 Updated: 08 May. 2023, 10:27

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

Seoul shares opened higher Monday, tracking gains on Wall Street last week, with investors staying concerned over the U.S. Federal Reserve's further rate hikes to tame inflation.

The Kospi rose 20.83 points, or 0.83 percent, to 2,521.77 in the first 15 minutes of trading.

The main index stayed nearly unchanged last week, closing 0.02 lower at 2,500.94 on Thursday. The stock market was closed Friday to celebrate Children's Day.

On Wednesday, Fed Chair Jerome Powell said after its policy meeting it's too soon to say the rate hike cycle is over as the Fed believes inflation remains too high.

The U.S. central bank raised interest rates by 0.25 percentage point to a range between 5 and 5.25 percent, the 10th consecutive hike since March 2022.

In Seoul, most large-cap stocks advanced across the board.

Samsung Electronics rose 1.2 percent, and SK hynix climbed 1 percent.

Hyundai Motor gained 0.9 percent, and SK Innovation jumped 4.9 percent.

Among decliners, KG Mobility, formerly known as SsangYong Motor, fell 1.9 percent.

Daewoo Shipbuilding & Marine Engineering declined 0.4 percent, and Posco Holdings shed 0.4 percent.

The local currency was trading at 1,323.65 won against the dollar at around 9:15 a.m., up 0.85 won from Thursday's close.

Yonhap