Seoul shares, local currency tumble amid woes over rate hikes, recession

SEOUL, Sept. 7 (Yonhap) -- Seoul stocks tumbled late Wednesday morning on foreign and institutional selling amid concerns over the U.S. Federal Reserve's additional rate hikes to tackle inflation and their impact on the global economy.

The benchmark Korea Composite Stock Price Index (KOSPI) opened lower, tracking losses on Wall Street, and the losses extended, with the index falling 1.55 percent, or 37.40 points, to trade at 2,372.62 as of 11:20 a.m.

Foreigners and institutions sold a net combined 478 billion won (US$345 million) worth of stocks, while individuals purchased stocks valued at 463 billion won.

Most large-cap stocks fell across the board.

Market bellwether Samsung Electronics Co. fell 1.7 percent, No. 2 chipmaker SK hynix Inc. declined 1.9 percent, top carmaker Hyundai Motor Co. lost 0.5 percent, and national flag carrier Korean Air Lines Co. shed 1.8 percent.

Among gainers, leading car battery maker LG Energy Solution rose 1 percent, No. 1 wireless services provider SK Telecom Co. climbed 0.6 percent, and No. 2 steelmaker Hyundai Steel Co. gained 1.1 percent.

The local currency was trading at 1,388.00 won against the U.S. dollar, down 16.30 won from the previous session's close. It was the first time in more than 13 years that the won has slid through the 1,380 mark.

kyongae.choi@yna.co.kr
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