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Kospi drops sharply as Fed signals fewer rate cuts for 2025

Published: 20 Dec. 2024, 10:24

A screen in Hana Bank's trading center in central Seoul shows the Kospi opening on Friday. [YONHAP]

Shares started sharply lower Friday on the U.S. Federal Reserve's hawkish turn, which signaled fewer rate cuts next year.

The Kospi dropped 24.88 points, or 1.02 percent, to 2,411.05 in the first 15 minutes of trading.

The Korean won continued to hover above 1,450 won per U.S. dollar, the lowest level in 15 years. It was trading at 1,450.9 won against the greenback at 9:15 a.m., down 1 won from the previous session.

Overnight, Wall Street closed almost flat, failing to recover from the previous session's slide sparked by the Fed's hawkish rate cut.

On Wednesday, the Fed cut its rate for the third consecutive time but hinted at a slower easing pace next year, considering the hotter-than-expected economy, driving down the global stock markets.

In Seoul, most big-cap shares kicked off in negative territory.

Samsung Electronics lost 1.13 percent, while SK hynix shot down 3.14 percent.

Hyundai Motor shed 1.89 percent, and Kia dipped 1.19 percent.

Samsung Biologics tumbled 3.86 percent, and Celltrion dropped 1.09 percent.

Korea Zinc, currently in the middle of a management control battle, slid 4.6 percent.

HD Hyundai Heavy, meanwhile, rose for the second straight day, jumping 1.57 percent.

Yonhap