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Seoul shares open sharply lower after Fed's rate hike

Stocks 09:37 May 06, 2022

SEOUL, May 6 (Yonhap) -- South Korean stocks opened steeply lower Friday, as investors fret over an economic downturn after the U.S. Federal Reserve raised the interest rate to tame high inflation.

The Korea Composite Stock Price Index (KOSPI) lost 34.89 points, or 1.3 percent, to 2,642.68 in the first 15 minutes of trading.

The Fed hiked the short-term rate by the widely expected 0.5 percentage point in its policy meeting Wednesday (U.S. time).

Shares in Seoul declined across the board, with market behemoth Samsung Electronics dipping 1.6 percent and top battery maker LG Energy Solution falling 1.4 percent.

Internet portal giant Naver and platform operator Kakao both slumped more than 4 percent.

U.S. markets erased recent rallies Thursday with the tech-heavy Nasdaq tumbling 4.99 percent.

The S&P 500 and the Dow Jones Industrial Average both sank more than 3 percent.

The local currency was trading at 1,273.40 won against the U.S. dollar as of 9:15 a.m., down 7.1 won from Wednesday's close.

South Korean stock markets were closed Thursday for Children's Day.


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