Seoul shares trim losses late Monday morning amid tech sell-off
Summary
Seoul shares trimmed earlier losses late Monday morning as retail buying offset a tech sell-off and worries about a possible U.S. rate hike next month. The benchmark KOSPI was down 1.96 percent at 6,655.62 as of 11:20 a.m. after opening 2.58 percent lower. Samsung Electronics and SK hynix led declines, while LG Energy Solution and SK Innovation rose.
Key Facts
- Institutions sold a net 633.74 billion won worth of stocks, and foreign investors sold 474.72 billion won, while retail investors bought 502.09 billion won net.
- Federal Reserve Chair Kevin Warsh warned at the Jackson Hole symposium in Wyoming on Friday that inflation is not slowing meaningfully and left open the door to further rate hikes.
- The Korean won was quoted at 1,375.05 won against the U.S. dollar as of 11:20 a.m., up 4.45 won from the previous stock trading session.
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Monday. Yonhap
Seoul shares trimmed earlier losses late Monday morning on retail buying, as hawkish comments from Federal Reserve Chair Kevin Warsh raised concerns over a possible interest rate hike next month.
After opening 2.58 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) erased its losses, trading 133.62 points, or 1.96 percent, lower at 6,655.62 as of 11:20 a.m.
Institutions and foreign investors sold a net 633.74 billion won ($460 million) and 474.72 billion won worth of stocks, respectively, while retail investors bought a net 502.09 billion won.
In his first major speech since taking the helm of the Fed, Warsh warned that inflation is not slowing meaningfully, leaving the door open to further rate hikes at the annual Jackson Hole symposium in Wyoming on Friday.
In addition to heightened bets on a U.S. rate hike, investors remained on alert amid escalating tensions in the Middle East following renewed U.S. strikes in the Strait of Hormuz.
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 Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 2.24 percent, while its chipmaking rival SK hynix retreated 2.36 percent.
Top carmaker Hyundai Motor declined 0.44 percent and defense giant Hanwha Aerospace shed 3.07 percent.
Among gainers, leading battery maker LG Energy Solution rose 0.41 percent and leading refiner SK Innovation jumped 7.1 percent.
The Korean won was quoted at 1,375.05 won against the U.S. dollar as of 11:20 a.m., up 4.45 won from the previous stock trading session.
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