Seoul stocks open at fresh record high despite Wall Street losses

SEOUL, June 18 (Yonhap) -- Seoul stocks opened at a fresh record high Thursday, despite overnight losses on Wall Street caused by the U.S. Federal Reserve's signal of a rate hike this year and uncertainty over a U.S.-Iran peace deal.

The benchmark Korea Composite Stock Price Index (KOSPI) opened 20.68 points, or 0.23 percent, higher at 8,884.92.

Overnight, major stock indexes closed lower as Fed Chair Kevin Warsh hinted that there could be a rate hike this year to stabilize inflation, after freezing the rate for the fourth straight time.

Major U.S. tech shares led the losses, with big tech companies, such as Microsoft, Apple and Alphabet, all closing in the red.

The two-day policy meeting, the first one under the new Fed chief, concluded with a fourth consecutive rate freeze at a range of 3.5 percent to 3.75 percent.

On the Middle East front, the President Donald Trump administration released the memorandum of understanding with Iran, but Trump emphasized that the agreement was not a final deal, and the United States can resume attacks if "they don't behave."

Han Ki-young, an analyst from Kiwoom Securities said the KOSPI could face short-term correction pressure due to a rapid rise, which lasted for the past five consecutive sessions.

"But the issue is merely the matter of pace, as the current market is backed by valuation appeal and profit momentum," Han added.