Seoul Shares Open Sharply Lower Following Hawkish Fed Comments

Seoul shares opened sharply lower on Monday, tracking losses on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) fell 175.30 points, or 2.58 percent, to 6,618.58 at the opening bell. The decline followed hawkish comments from Federal Reserve Chair Kevin Warsh, who warned in his first major speech as Fed chair that inflation remains a concern and is not slowing meaningfully. His remarks at the annual Jackson Hole symposium in Wyoming left the door open for further interest rate hikes next month.

By late Monday morning, the KOSPI trimmed some of its earlier losses. As of 11:20 a.m. the index was trading at 6,655.62, down 1.96 percent. This recovery was supported by retail investors who bought a net 502.09 billion won in stocks, while institutions and foreign investors sold a net 633.74 billion won and 474.72 billion won, respectively. Additional market pressure came from escalating tensions in the Middle East following renewed U.S. strikes in the Strait of Hormuz.

Tech stocks led the decline in Seoul. Samsung Electronics fell between 2.24 percent and 2.53 percent, and SK hynix retreated between 2.18 percent and 2.36 percent. Hyundai Motor also declined, while SK Innovation saw a significant jump, rising between 5.99 percent and 7.1 percent. The Korean won was quoted between 1,375.05 and 1,377.70 won against the U.S. dollar during the morning session.