Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Editor
Dennis Salva
Sep 21, 2023 2:26AM ET
lets begin
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Extended Sale! Save on premium data with Claim 60% OFF
Seoul stocks dip following Fed's rate decision; tech and auto sectors hit hard
Published Sep 20, 2023 09:15PM ET
Updated Sep 20, 2023 09:15PM ET
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
The Korea Composite Stock Price Index (KOSPI) lost 28.2 points or 1.1% to 2,531.8 after the first hour of trade on Thursday as investors retreated following the U.S. Federal Reserve's decision to keep its benchmark lending rate steady, while indicating a potential additional rate hike later in the year.
This downward trend followed a similar trajectory in the U.S. market, where stocks closed lower on Wednesday. The S&P 500 dropped almost 1 percent and the Nasdaq Composite plunged 1.53 percent amid a slide in tech giants, including NASDAQ:AAPL and NASDAQ:TSLA.
"We are prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we are confident that inflation is moving down sustainably toward our objectives," said Fed Chair Jerome Powell.
In Seoul, the tech sector saw mixed results. Samsung Electronics (KS:005930), the world's leading memory chipmaker, saw a slight gain of 0.14 percent, while its rival SK hynix (KS:000660) lost 1.36 percent. Battery shares also started on a negative note, with LG Energy Solution and Samsung SDI both dropping more than 1.2 percent.
The auto industry also suffered losses with Hyundai Motor (OTC:HYMTF) retreating by 0.62 percent and its smaller affiliate Kia declining by 0.49 percent.
The steel industry was not immune to this downward trend either. Steel giant Posco Holdings lost 1.01 percent, its battery component making unit Posco Future M retreated by 0.61 percent, and its energy trading unit Posco International plunged by 2.83 percent.
Leading chemical producer LG Chem also experienced a significant drop of more than 3 percent.
The local currency mirrored this negative sentiment with the Korean won trading at 1,334.70 against the U.S. dollar at 9:15 a.m., down 4.6 won from Wednesday's close.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.