Seoul stocks dip to nearly 14-month low

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, Jan. 25. Korean stocks tumbled to an almost 14-month low Tuesday as investors brace for hawkish comments from the U.S. Federal Reserve. AP-Yonhap

Stocks on local markets tumbled to an almost 14-month low Tuesday as investors brace for hawkish comments from the U.S. Federal Reserve. The Korean won also lost against the dollar.

The benchmark KOSPI plunged 71.61 points, or 2.56 percent, to close at 2,720.39, its lowest level since Dec. 8, 2020 when it closed at 2,700.93.

Trading volume was moderate at about 630 million shares worth some 11.5 trillion won ($9.6 billion), with losers outnumbering gainers 862 to 55.

Foreigners dumped a net 463 billion won worth of stocks and institutions offloaded 171 billion won, while retail investors bought 586 billion won.

After a weak start, the KOSPI plummeted quickly amid a massive foreign sell-off.

Stocks extended their losing streak to a third session, largely due to investors' concerns that the U.S. central bank may hint at more hawkish policies than the market consensus.

The Federal Reserve is scheduled to end its two-day monetary policy meeting Wednesday (local time), which is expected to give clues on its monetary policy direction.

Korea's record high virus tally also added to worries about stronger quarantine measures.

This marked the first time for the daily caseload to surpass the 8,000 mark since the country reported its first COVID-19 infection Jan. 20, 2020.

"It seems like stock investors' appetite for risky assets seems to have withered (in today's trading)," Meritz Securities analyst Lee Jin-woo said.

Most large caps closed down in Seoul.

Market bellwether Samsung Electronics lost 1.46 percent to close at 74,000 won, while No. 2 chipmaker SK hynix decreased 0.84 percent, falling to 118,000 won.

Giant battery maker LG Chem slumped 4.17 percent to 643,000 won, with Samsung SDI dipping 5.87 percent to 642,000 won. Internet portal operator Naver lost 1.98 percent to 322,000 won.

Pharmaceutical behemoth Samsung Biologics declined 3.82 percent to 780,000 won, and leading carmaker Hyundai Motor retreated 1.27 percent to 194,500 won.

The local currency closed at 1,198.6 won to the U.S. dollar, down 2.5 won from the previous session's close. (Yonhap)