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Stocks open lower after U.S. economic data stokes rate hike fears

Published: 07 Sep. 2023, 10:09

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

Stocks opened lower Thursday, following better-than-expected U.S. economic data that bolstered the possibility of further rate hikes.

The benchmark Kospi fell 6.35 points, or 0.25 percent, to 2,556.99 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average fell 0.6 percent to 34,443.19, and the tech-heavy Nasdaq Composite declined 1.1 percent to 13,872.47.

The Institute for Supply Management's (ISM) U.S. services index for August stood at 54.4, the highest monthly reading since February. A reading above 50 means growth.

Analysts said the ISM data underpins the possibility that the Fed may raise rates one more time this year.

In Seoul, large-cap stocks were mixed.

Samsung Electronics rose 0.1 percent, Korean Air Lines climbed 0.9 percent, and SK Innovation gained 0.5 percent.

SK hynix fell 0.6 percent, and LG Energy Solution shed 0.4 percent.

Hyundai Motor declined 0.3 percent, and Korea Electric Power Corporation dropped 0.4 percent.

The local currency was trading at 1,336.35 won against the dollar, up 5.85 won from Wednesday's close.

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