Seoul shares open sharply lower on Fed chief's hawkish comments
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Monday. Yonhap
Seoul shares opened sharply lower Monday, tracking losses on Wall Street amid the possibility of an imminent rate hike by the U.S. Federal Reserve caused by hawkish comments from its chief last week.
After opening 2.58 percent down, the benchmark Korea Composite Stock Price Index (KOSPI) trimmed earlier losses, trading 163.60 points, or 2.41 percent lower at 6,625.28, as of 9:15 a.m.
On Friday (U.S. time), the Dow Jones Industrial Average fell 0.02 percent, while the tech-heavy Nasdaq Composite declined 0.52 percent.
In his first major speech as Fed chair, Kevin Warsh warned that inflation remains a concern, leaving the door open to further interest rate hikes at its annual Jackson Hole symposium in Wyoming on Friday.
In Seoul, most large-cap stocks declined.
Market bellwether Samsung Electronics fell 2.53 percent, while its chipmaking rival SK hynix retreated 2.18 percent.
Top carmaker Hyundai Motor declined 0.88 percent and defense giant Hanwha Aerospace shed 0.09 percent.
Among gainers, steelmaker POSCO Holdings rose 0.15 percent and leading refiner SK Innovation jumped 5.99 percent.
The Korean won was quoted at 1,377.70 won against the U.S. dollar, up 1.8 won from the close of the previous stock trading session.