Stocks open lower as investors digest U.S. rate hike pause

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Stocks open lower as investors digest U.S. rate hike pause

Published: 15 Jun. 2023, 10:35 Updated: 15 Jun. 2023, 10:36

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets open on Thursday. [YONHAP]

Stocks opened lower Thursday as investors digested the U.S. Federal Reserve's rate hike respite overnight.

The benchmark Kospi lost 3.95 points, or 0.15 percent, to 2,615.13 in the first hour of trading. The index had opened higher when the session began Thursday but lost ground to enter negative territory.

The Fed held the interest rates steady in the range of 5 percent to 5.25 percent in its policy meeting Wednesday, the first pause in the series of rate hikes that had continued for the past 15 months to tame runaway inflation.

Yet the U.S. central bank signaled more rate hikes by the end of this year as monetary tightening needs to be maintained, citing persistent inflation.

In Seoul, shares gathered ground across the board, led by large-cap tech and materials companies.

Samsung Electronics traded flat, and SK hynix rose 0.67 percent.

LG Energy Solution lost 0.51 percent, and Samsung SDI shed 0.96 percent.

The local currency was trading at 1,276.20 won against the dollar at around 9:15 a.m., down 2.3 won from Wednesday's close.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]