South Korean shares slipped more than 2 per cent on Thursday, after the US Federal Reserve held interest rates steady and signalled only one cut this year, with inflation risks from the West Asia conflict dragging on sentiment.
The benchmark KOSPI lost 151.85 points, or 2.56 per cent, to 5,773.18 as of 0144 GMT. The index had risen for a third straight session on Wednesday to close at its highest since late February.
Overnight, Wall Street ended sharply lower after a hawkish Fed kept rates unchanged and projected only a single cut for the year, as policymakers took stock of economic risks from surging oil prices and the US-Israeli war with Iran.
South Korea’s Finance Minister said the government would coordinate with the central bank and financial agencies to stabilise financial markets if needed.
Among the index heavyweights, chipmaker Samsung Electronics fell 3.84 per cent and peer SK Hynix lost 4.36 per cent. Battery maker LG Energy Solution slid 2.35 per cent.
Hyundai Motor and sister automaker Kia shed 3.49 per cent and 1.88 per cent, respectively. Steelmaker POSCO Holdings dipped 3.29 per cent, while drugmaker Samsung BioLogics retreated 2.03 per cent.
Of the total of 925 traded issues, 211 advanced and 676 declined.
Foreigners were net sellers of shares worth 1.1 trillion won ($733.97 million).
The won was quoted at 1,499.6 per dollar on the onshore settlement platform, 0.07 per cent above Wednesday’s close of 1,500.7.
In the money and debt markets, June futures on three-year treasury bonds lost 0.18 point to 104.27.
The most liquid three-year Korean treasury bond yield rose 6.6 basis points to 3.322 per cent, while the benchmark 10-year yield added 3.6 basis points to 3.682 per cent.