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Seoul shares down 1.44 pct late Thurs. morning on rate hikes woes

All News 11:33 September 01, 2022

SEOUL, Sept. 1 (Yonhap) -- South Korean shares traded 1.44 percent lower late Thursday morning on concerns over the U.S. Federal Reserve's aggressive monetary tightening and its possible impact on global economic growth.

The Korea Composite Stock Price Index had fallen 35.65 points to 2,436.40 as of 11:20 a.m.

The index opened lower, following an overnight decline on Wall Street, and extended losses further on heavy selling by institutions and foreigners.

Analysts said investor sentiment was dampened by hawkish remarks by Fed Chair Jerome Powell last week that the Fed will continue to raise interest rates for some time though it would "bring some pain to households and businesses."

Last month, the Fed raised its key interest rate by 75 basis points for the second straight month.

Most large-cap stocks in Seoul lost ground, with tech shares under heavy downward pressure.

Market bellwether Samsung Electronics lost 1.68 percent, and No. 2 chipmaker SK hynix dropped 2.31 percent.

Top chemical firm LG Chem retreated 0.95 percent, and Samsung SDI lost 2.17 percent.

Bio shares also fell, with Samsung Biologics retreating 0.84 percent and pharmaceutical giant Celltrion shedding 1.06 percent.

Hyundai Motor went down 0.77 percent, and its smaller affiliate Kia lost 0.99 percent.

But leading car battery maker LG Energy Solution added 1.08 percent.

The local currency was trading at 1,349.50 won against the U.S. dollar, down 11.90 won from the previous session's close.


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