Stocks open higher after U.S. rate hike

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Stocks open higher after U.S. rate hike

Published: 27 Jul. 2023, 10:17

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

Stocks opened higher Thursday following the U.S. Federal Reserve's expected interest rate hike of 0.25-percentage points overnight.

The benchmark Kospi added 6.39 points, or 0.25 percent, to 2,598.75 in the first 15 minutes of trading.

On Wednesday, the Fed raised interest rates by a much-anticipated quarter of a percentage point to the 5.25 to 5.5 percent range, the highest level in more than 22 years.

Fed Chair Jerome Powell suggested that the U.S. central bank "would choose to hold steady" or "would raise" the rate again at the September meeting depending on data, though investors hope the July hike was the end of its aggressive monetary tightening.

U.S. stocks closed mixed. The Dow Jones Industrial Average rose 0.23 percent, while the tech-heavy Nasdaq Composite inched down 0.12 percent.

In Seoul, top-cap shares traded mixed.

Samsung Electronics rose 0.29 percent after reporting a 95 percent fall in the second-quarter profit. SK hynix surged 4.78 percent on bargain hunting.

Battery shares tumbled following recent rallies.

LG Energy Solution fell 2.59 percent, and LG Chem shed 2.06 percent. Samsung SDI retreated 2.13 percent.

Posco shares opened sharply lower, with Posco Holdings skidding 4.29 percent and Posco Future M sinking 7.5 percent.

Among gainers, Samsung Biologics advanced 2.2 percent, and Naver increased 1.42 percent.

The local currency was trading at 1,271.05 won against the dollar at 9:15 a.m., down 3.45 won from the previous session's close.

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