Seoul shares open lower amid U.S. debt ceiling woes

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Seoul shares open lower amid U.S. debt ceiling woes

Published: 15 May. 2023, 09:45 Updated: 15 May. 2023, 13:39

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

Stocks opened slightly lower Monday, as growing worries over the debt ceiling standoff between the U.S. government and Congress weighed on investor sentiment.

The Kospi slipped 4.10 points, or 0.17 percent, to 2,471.32 in the first 15 minutes of trading.

The Joe Biden administration and a divided Congress have yet to reach an agreement over raising the U.S. government's $31.4 trillion borrowing limit, with the Congressional Budget Office warning Friday of significant risks of defaulting on payments in June if the debt ceiling is not raised.

U.S. consumer sentiment slumped to a six-month low in May, adding to concerns the economy is falling into recession.

All three major U.S. indexes finished lower Friday.

In Seoul, large-cap auto shares lost ground.

Hyundai Motor fell 0.72 percent, and Hyundai Mobis lost 0.5 percent.

Samsung Electronics gained 0.16 percent, and LG Chem added 0.2 percent.

The local currency was trading at 1,340.20 won against the dollar at around 9:15 a.m., up 5.7 won from Friday's close.

Yonhap