Kospi opens lower after U.S. Fed's hefty rate cut

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Kospi opens lower after U.S. Fed's hefty rate cut

Published: 19 Sep. 2024, 10:19 Updated: 19 Sep. 2024, 11:00

KIM JU-YEON
kim.juyeon2@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Thursday. [NEWS1]

Shares opened lower Thursday, tracking losses on Wall Street after the U.S. Federal Reserve cut interest rates by half a percentage point, the first rate cut in more than four years.

The Kospi fell 0.35 percent, or 8.90 points, to 2,565.51 in the first 15 minutes of trading.

The Fed cut its overnight lending rate to a range of 4.75 percent to 5 percent in an aggressive start to a monetary-easing cycle in the world's biggest economy.

The U.S. central bank likely made the decision as it sees inflation is easing from the levels seen two years ago, analysts said.

In Seoul, large-cap stocks were mixed.

Samsung Electronics fell 2 percent, chipmaker SK hynix retreated 7.6 percent, state utility Korea Electric Power shed 0.7 percent and Hyundai Steel was down 0.8 percent.

Among gainers, carmaker Hyundai Motor rose 3 percent, LG Chem climbed 0.5 percent, Korea Gas gained 1.1 percent and battery maker LG Energy Solution was up 0.3 percent.

The local currency was trading at 1,329.45 won against the dollar, down 0.05 won from the previous session.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]