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Seoul stocks open sharply lower after U.S. Fed's hawkish remarks

All News 09:42 November 03, 2022

SEOUL, Nov. 3 (Yonhap) -- Seoul stocks opened sharply lower Thursday, tracking losses on Wall Street as investors digest the Federal Reserve's aggressive monetary tightening stance.

The benchmark Korea Composite Stocks Price Index (KOSPI) dipped 39.87 points, or 1.71 percent, to 2,297 in the first 15 minutes of trading.

The Fed raised its benchmark rate by another 75 basis points on Wednesday (local time), bringing the federal funds rate to a target range of 3.75 to 4 percent.

Fed Chair Jerome Powell warned it has "some ways to go" with inflation and the country's base rate could peak at a higher "terminal" level.

U.S. stocks fell following such remarks, as hopes the Fed would pivot its hawkish stance turned into disappointment.

The Dow Jones Industrial Average declined 1.55 percent, the S&P 500 fell 2.5 percent, and the tech-heavy Nasdaq Composite slid 3.36 percent.

In Seoul, large cap shares opened lower across the board.

Market bellwether Samsung Electronics declined 2.35 percent, and rival chipmaker SK hynix retreated 2.6 percent.

Battery maker LG Energy Solution inched up 0.7 percent, bio firm Celltrion slid 2.4 percent, and top automaker Hyundai Motor lost 2.12 percent.

The local currency was trading hands at 1,426.9 won against the greenback, down 9.5 won from Wednesday's close, as of 9:15 a.m.


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