South Korean stocks remained nearly unchanged late Thursday morning after the Federal Reserve hiked interest rates by a widely expected level amid lingering concerns over a global banking sector crisis.
The benchmark Korea Composite Stock Price Index (KOSPI) had shed 1.59 points, or 0.07 percent, to 2,415.37 as of 11:20 a.m.
The index opened markedly lower, tracking Wall Street gains overnight, but most of earlier losses were erased on foreign and institutional buying.
On Wednesday (U.S. time), the Fed raised its key rate by 25 basis points to a range of 4.75 percent to 5 percent, rather than pushing for a 50 basis point increase that traders had earlier forecast.
But investors remained wary about the impact of high borrowing costs on the financial system, as Chair Jerome Powell dismissed any rate cuts this year to curb inflation, and U.S. Treasury Secretary Janet Yellen said her government is not considering "blanket insurance" for all U.S. bank deposits.
In Seoul, big-cap shares traded mixed, while major chipmakers gathered ground.
Market bellwether Samsung Electronics rose 0.33 percent, and chip giant SK hynix added 0.58 percent.
Leading battery maker LG Energy Solution remained flat, and Samsung SDI went up 0.68 percent. LG Chem also grew 0.71 percent.
Platform operators were under heavy downward pressure. Internet giant Naver dived 1.69 percent, and Kakao, the operator of the popular mobile messenger KakaoTalk, skidded 1.91 percent.
Carmakers traded mixed, with No. 1 automaker Hyundai Motor jumping 0.83 percent and its affiliate Kia shedding 0.51 percent.
The local currency was trading at 1,289.35 won against the U.S. dollar as of 11:20 a.m., up 18.35 won from the previous session's close.
Source: Yonhap News Agency