South Korean stocks slide on Wall Street’s lead and Fed’s monetary tightening
South Korean stocks opened lower on Wednesday, mirroring an overnight drop on Wall Street, amid persistent concerns about further interest rate hikes by the Federal Reserve and the U.S. economic outlook. The benchmark Korea Composite Stock Price Index (KOSPI) shed 3.01 points, or 0.12 percent, to 2,459.96 in the first 15 minutes of trading.
U.S. shares ended significantly lower overnight as data indicated weaker-than-expected consumer confidence, fueling fears over a slowdown in the world’s largest economy. The Dow Jones Industrial Average sank 1.14 percent, while the tech-heavy NASDAQ: COMP tumbled 1.57 percent. Investors remained anxious about the Fed’s continued push for aggressive monetary tightening, as more data revealed record-high home prices for July.
The local currency was trading at 1,352.80 won against the U.S. dollar at 9:15 a.m. local time, down 4.3 won from the previous session’s close.
The South Korean stock, ETF, derivatives, and commodity markets will all be closed during the extended Chuseok holiday, which runs from Thursday through Tuesday.