Seoul stocks erase earlier losses late Tue. morning amid recession woes

SEOUL– South Korean shares trimmed earlier losses late Tuesday morning amid investor concerns over a global recession after the U.S. Federal Reserve vowed to continue its monetary tightening to tame inflation.

The benchmark Korea Composite Stock Price Index (KOSPI) had fallen 2.83 points, or 0.12 percent, to 2,349. 34 as of 11:15 a.m.

Overnight, the Dow Jones Industrial Average retreated 0.49 percent, and the tech-heavy Nasdaq Composite lost 1.49 percent.

Last week, the Fed raised its benchmark rate by 50 basis points, and Fed officials indicated plans to raise the rate to a higher-than-expected level until they are confident inflation has been subdued.

Institutions and individuals bought a combined 125 billion won (US$96 million) worth of stocks, offsetting foreign selling valued at 130 billion won.

Large-cap stocks were mixed across the board.

Market bellwether Samsung Electronics Co. fell 1 percent, No. 2 chipmaker SK hynix Inc. dropped 0.5 percent, top carmaker Hyundai Motor Co. shed 1.3 percent, and leading refiner SK Innovation Co. was down 1.2 percent.

Among gainers, national flag carrier Korean Air Co. rose 1 percent, cosmetics firm AmorePacific Corp. climbed 0.4 percent, and leading car battery maker LG Energy Solution was up 2.4 percent.

The local currency was trading at 1,301.15 won against the U.S. dollar as of 11:15 a.m., up 1.75 won from the previous session’s close.

Source: Yonhap News Agency

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