Kospi falls amid speculation of delayed Fed rate cuts

A screen in Hana Bank's trading room in central Seoul shows the stock market prices as it opens on Tuesday. [YONHAP]

Shares opened lower Tuesday amid speculation that stronger-than-expected data may prod the Federal Reserve to push back its rate-cut timetable.

The Kospi fell 10.12 points, or 0.4 percent, to 2,737.74 in the first 15 minutes of trading.

The Institute for Supply Management's manufacturing purchasing managers' index released overnight stayed at 50.3 last month, the highest since September 2022, despite prolonged tightening by the Fed.

The Fed has been expected to cut rates starting this year in June, but the U.S. central bank may delay its rate-cut timing given high inflation and a strong economy.

In Seoul, large-cap stocks were mixed.

Hyundai Motor Co. fell 1.5 percent and Korean Air Co. declined 0.9 percent.

Posco Holdings shed 0.6 percent and Korea Electric Power Corp. was down 1.8 percent.

Among gainers, Samsung Electronics Co. rose 1.5 percent. SK hynix Inc. climbed 0.1 percent and LG Energy Solution was up 0.4 percent.

The local currency was trading at 1,354.85 won against the dollar, up 5.45 won from the previous session's close.

BY LEE SOO-JUNG, YONHAP [lee.soojung1@joongang.co.kr]