Breaking News
Investing Pro 0
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 21, 2023 09:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
 
US500
-0.54%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/KRW
+0.28%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-0.95%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-1.36%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-0.84%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
005380
-0.11%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

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.

Seoul stocks dip following Fed's rate decision; tech and auto sectors hit hard
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
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
Continue with Google
or
Sign up with Email