Seoul, Sep 17: South Korean stocks opened higher on Thursday but gave up most of their early gains as investors assessed the US Federal Reserve’s first interest-rate hike in more than three years and its implications for global financial markets.
The benchmark Korea Composite Stock Price Index (KOSPI) was up 5.26 points, or 0.08 per cent, at 6,723.23 by 11:12 a.m., after gaining more firmly at the start of the session.
Investor sentiment remained cautious as markets weighed the Fed’s decision to raise its benchmark interest rate by 25 basis points to a range of 3.75 per cent to 4 per cent. The move was aimed at addressing continued inflationary pressures in the US.
Fed Chair Kevin Warsh said inflation remained elevated but did not indicate whether the latest rate increase would be followed by further hikes or represent a one-time move.
Large-cap Korean stocks traded mixed during the morning session. Samsung Electronics declined 0.39 per cent, while chipmaker SK hynix fell 0.74 per cent.
Financial and defence stocks, however, attracted buying interest. KB Financial gained 1.47 per cent, while Hanwha Aerospace advanced 3.03 per cent.
The currency market also reflected some pressure on the Korean won. The won was quoted at 1,381.9 against the US dollar as of 11:12 a.m., weakening by 4.9 won from the previous session’s close.
The Seoul market is likely to remain sensitive to developments in US monetary policy, currency movements and global investor sentiment as participants assess th
