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An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Thursday. (Yonhap) |
Seoul shares ended lower Thursday after the US Federal Reserve signaled its plans for additional interest rate hikes next year with the warning of an economic slowdown. The Korean won fell against the US dollar.
The benchmark Korea Composite Stock Price Index fell 38.28 points, or 1.60 percent, to close at 2,360.97. Trading volume was light at 366.15 million shares worth 6.03 trillion won ($4.6 billion), with decliners outstripping gainers 540 to 307.
Institutions and foreigners sold a combined 495 billion won worth of stocks, exceeding individuals' stock purchases valued at 460 billion won.
Overnight, the Dow Jones Industrial Average lost 0.4 percent to 33,966.35, and the tech-heavy Nasdaq Composite declined 0.8 percent to 11,170.89.
The decline came after the Federal Open Market Committee raised its benchmark rate by 50 basis points to a range of 4.25 percent to 4.5 percent.
The Fed policymakers forecast rates would end next year in a range of 5 percent to 5.25 percent, a higher level than previously indicated.
Fed Chair Jerome Powell also said the Fed will not reduce rates until it is really confident that inflation is coming down in a sustained way.
The Fed's hawkish outlook poured cold water on expectations that the US central bank could slow down its monetary tightening next year, analysts said.
"On top of rate hike worries, the dollar's strength and foreign selling also weighed on the main index, with no particular upside momentum in the market," Park Hee-cheol, an analyst at Mirae Asset Financial Group, said.
Most large-cap stocks declined. Market bellwether Samsung Electronics Co. fell 2 percent to 59,300 won, No. 2 chipmaker SK hynix Inc. declined 2 percent to 80,200 won, top carmaker Hyundai Motor Co. dropped 0.9 percent to 162,000 won, and national flag carrier Korean Air Co. shed 1.6 percent to 24,850 won.
Among gainers, state utility Korea Electric Power Corp. rose 0.2 percent to 20,850 won, the country's sole aircraft manufacturer Korea Aerospace Industries Co. climbed 1.3 percent to 48,500 won, and refiner S-Oil Corp. was up 0.1 percent to 88,100 won.
The Korean won ended at 1,303.10 won against the US dollar, down 6.80 won from the previous session's close. (Yonhap)
