Stocks open lower as rate hike woes, weak currency worry investors

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Stocks open lower as rate hike woes, weak currency worry investors

Published: 27 Sep. 2023, 10:50

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

Stocks opened lower Wednesday as lingering U.S rate hike woes, coupled with high inflation and weak local currency, worry investors.

The Kospi shed 3.01 points, or 0.12 percent, to 2,459.96 in the first 15 minutes of trading.

Overnight, U.S. shares ended lower as data pointed to weaker-than-expected consumer confidence, stoking fears over a slowdown in the world's largest economy.

Investors remained worried about the U.S. Federal Reserve's continued push for aggressive monetary tightening, as more data showed record-high home prices for July.

The Dow Jones Industrial Average sank 1.14 percent, and the tech-heavy Nasdaq Composite tumbled 1.57 percent.

On the Seoul bourse, top-cap shares traded mixed.

Samsung Electronics rose 0.73 percent on bargain hunting, while LG Energy Solution fell 0.63 percent.

SK hynix retreated 1.13 percent, and Samsung SDI sank 1.72 percent. LG Chem dropped 2.08 percent.

Carmakers opened mixed, with Hyundai Motor remaining unchanged and Kia down 0.25 percent.

Samsung Biologics inched up 0.15 percent, but Naver shed 0.5 percent.

The local currency was trading at 1,352.8 won against the dollar at 9:15 a.m., up 4.3 won from the previous session's close.

Korean stock, exchange-traded fund, derivatives and commodity markets will all be closed during the extended Chuseok holiday, which runs from Thursday through Tuesday.

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