Seoul stocks sharply down after Fed's rate hike signal

SEOUL, Jan. 27 (Yonhap) -- South Korean stocks tumbled almost 3 percent late Thursday morning as investor sentiment was dented by the hawkish stance by the Federal Reserve.

The benchmark Korea Composite Stock Price Index (KOSPI) retreated 78.87 points, or 2.91 percent, to 2,630.37 points as of 11:21 a.m.

Stocks came off to a weak start as investors digest the U.S. central bank chief's signaled rate hikes in March. The escalating Russia-Ukraine political tensions also sapped the investor appetite for risky assets.

Overnight, the tech-heavy Nasdaq composite inched up 0.02 percent and the Dow Jones Industrial Average retreated 0.38 percent.

LG Energy Solution, a South Korean giant battery maker and newcomer on the market, traded at 481,500 won as of 11:21 a.m., down 19.35 percent from its opening price of 597,000 won but still higher than the IPO price of 300,000 won.

After the market debut, LG Energy Solution emerged as the country's second most-valued firm.

Market top cap Samsung Electronics lost 1.91 percent, while No. 2 chipmaker SK hynix added 3.83 percent.

Internet portal operator Naver declined 1.12 percent, and leading carmaker Hyundai Motor decreased 1.58 percent.

The local currency was trading at 1,202.9 won against the U.S. dollar, down 5.2 won from the previous session's close.

jwc@yna.co.kr
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