Stocks open flat after Fed hints more rate hikes

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Stocks open flat after Fed hints more rate hikes

Published: 22 Jun. 2023, 10:29 Updated: 22 Jun. 2023, 13:30

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

Stocks opened flat Thursday as investors digested the U.S. Federal Reserve chief's hints on more rate hikes this year.

The benchmark Kospi inched up 3.15 points, or 0.12 percent, to 2,585.78 in the first 15 minutes of trading.

Overnight, all three major U.S. equity indexes ended in negative territory after Fed Chair Jerome Powell said during his congressional testimony that the Fed remained focused on wrestling down inflation back to its 2 percent target and there could be two more quarter-percentage-point hikes this year.

"Nearly all [Federal Open Market Committee] participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year," he said.

The Dow Jones Industrial Average fell 0.3 percent, the S&P 500 went down 0.52 percent, and the Nasdaq Composite declined 2.05 percent.

In Seoul, large-cap shares opened mixed.

Samsung Electronics added 0.85 percent, and SK hynix gained 0.43 percent.

LG Energy Solution increased by 1.25 percent, and Samsung SDI climbed by 0.14 percent.

Auto stocks lost ground, with Hyundai Motor retreating 1.23 percent and Kia falling 0.83 percent.

The local currency was trading at 1,288.4 won against the dollar at 9:15 a.m., down 3.6 won from the previous session's close.

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