Seoul: Stocks in Seoul were trading nearly unchanged late Thursday morning as investors processed the Federal Reserve's first rate hike decision in over three years. The benchmark Korea Composite Stock Price Index (KOSPI) edged up 5.26 points, or 0.08 percent, to 6,723.23 as of 11:12 a.m. The index had earlier posted gains, but these were reduced following the Fed's rate hike, which impacted investor sentiment.
According to Yonhap News Agency, on Wednesday (U.S. time), the Federal Reserve increased interest rates by a quarter of a percentage point to a range of 3.75 percent to 4 percent to combat inflation. Fed Chair Kevin Warsh noted that inflation levels were elevated but did not specify if this rate hike was part of a series of future adjustments or a standalone measure.
In the Seoul market, large-cap shares showed mixed performance. Samsung Electronics slipped by 0.39 percent, while its competitor in the chipmaking sector, SK hynix, fell by 0.74 percent. On the other hand, KB Financial saw a rise of 1.47 percent, and defense company Hanwha Aerospace experienced an increase of 3.03 percent.
The Korean won was valued at 1,381.9 won against the U.S. dollar as of 11:12 a.m., marking a decrease of 4.9 won from the previous day's close.