Seoul shares open sharply lower tracking Wall Street losses amid Fed rate hike concerns
Quick Look
- Seoul shares opened sharply lower on Monday, tracking Wall Street losses amid concerns of an imminent U.S.
- Federal Reserve rate hike following hawkish comments from Fed Chair Kevin Warsh at the Jackson Hole symposium.
- The KOSPI fell 2.41% to 6,625.28 by 9:15 a.m., with Samsung Electronics down 2.53% and SK Innovation up 5.99% as top gainer.
AI-generated summary
Why It Matters
The article reports on Monday's opening of Seoul shares, which declined sharply tracking Wall Street losses amid concerns over a potential U.S. Federal Reserve rate hike. This follows hawkish remarks by Fed Chair Kevin Warsh at the Jackson Hole symposium, signaling continued inflation concerns.
SEOUL, Aug. 31 (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.
What to Watch
AI outlook — possibilities, not facts
The U.S. Federal Reserve may implement an interest rate hike in the near term.
Possible · Within weeks
Open Questions
- Will the Federal Reserve actually implement a rate hike in the near term?
- How long will the current market volatility persist?
- What specific inflation metrics are driving the Fed's hawkish stance?
