Stocks open lower before U.S. rate decision

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Stocks open lower before U.S. rate decision

Published: 26 Jul. 2023, 10:07

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets close on Tuesday. [NEWS1]

Stocks opened lower Wednesday as investors await the U.S. central bank's rate announcement amid corporate earnings releases.

The benchmark Kospi lost 4.24 points, or 0.16 percent, to 2,632.22 in the first 15 minutes of trading.

Overnight, U.S. stocks closed higher. The Dow Jones Industrial Average grew 0.08 percent, and the tech-heavy Nasdaq Composite added 0.61 percent.

The Federal Reserve began a two-day rate-setting meeting Tuesday, and investors hope for an end to its monetary tightening cycle.

In Seoul, large-cap stocks traded mixed, with battery and steel shares remaining bullish.

Samsung Electronics fell 0.57 percent, while SK hynix rose 1.68 percent on high expectations for a turnaround in the second half despite reporting second-quarter losses due to sagging demand.

LG Energy Solution grew 0.34 percent, and LG Chem climbed 1.39 percent.

Posco shares got off to a strong start again following recent sharp gains. Posco Holdings surged 5.62 percent, and Posco Future M jumped 5 percent.

But carmakers opened lower, with Hyundai Motor skidding 1.05 percent and Kia losing 1.54 percent.

Samsung Biologics lost 1.63 percent, and Naver retreated 0.7 percent.

The local currency was trading at 1,277.80 won against the dollar at 9:15 a.m., up 2.4 won from the previous session's close.

BY SOHN DONG-JOO, YONHAP [[email protected]]